Business · Economy · 7 hrs ago
Brazilian fashion retailers link September job losses to end of import tax
Brazil's fashion retail association says the removal of a tax on small imports is hurting local retailers.
The tax applied to overseas purchases of up to US$50 and was abolished in May.
In September, retail lost 46,400 jobs, including 34,900 in clothing and accessories and 11,500 in footwear, according to figures cited by the association.
The sector also faces high household debt, high interest rates and competition from foreign shopping platforms, especially Chinese ones.
The association says international parcel volumes rose 86.1% after the tax exemption, compared with the same period in 2025.
It is asking the government to review the change this year, ahead of Black Friday and Christmas, after the government had promised a review, according to the group.
From next year, imported purchases will face a new tax, estimated at about 9%, as part of Brazil's tax reform.
Brazilian fashion retailers blamed the end of a tax on small imports for job losses in the sector in September.
The Brazilian Textile Retail Association said 34,900 of the retail job losses were in clothing and accessories, and 11,500 were in footwear.
The association urged the government to review the measure, which ended in May, before Black Friday and Christmas.
It cited high household debt and competition from international platforms as further pressures on sales.
- Who
- Brazil’s fashion retail sector and the Brazilian Textile Retail Association (Abvtex).
- What
- Retailers linked September job losses to the end of a tax on small imports.
- When
- The job losses were in September; the tax ended in May.
- Where
- Brazil.
- Why
- The sector said the end of the tax increased competition from international platforms, while high household debt was also weighing on sales.
This story does not have two clearly opposing sides.
Brazil ended the tax on imports of up to US$50.
Retail lost 46,400 jobs, including 34,900 in clothing and accessories and 11,500 in footwear, according to figures cited by Abvtex.
Brazil’s central bank kept the Selic rate at 13.75% a year.
Lojas Renner announced it would withdraw its revenue growth projections for 2026 and 2027–2030.
- Retail job losses
- 46,400 in September
- Clothing and accessories
- 34,900 retail job losses
- Footwear
- 11,500 retail job losses
- Tax threshold
- Imports worth up to US$50
- Selic rate
- 13.75% a year