A few days ago, the press reported on a new and absurd 92% tax rate for products that encourage addiction on purchases over $50 from Asian websites. With such a high tax, it’s as if people are buying one product for themselves and an identical one for the government. Lula tried his best to avoid doing something similar, but with the reckless spending and fiscal irresponsibility that permeate his government, imposing the new tax to increase revenue became inevitable.
The high volume of purchases on these sites prompted the government to review import rules. In this regard, it’s important to note that there are two reasons why the government decides to impose a tax. The first is to fill the public coffers. The second is to achieve a purpose beyond the primary function of collecting revenue—often with the aim of intervening in the market. The first reason gives rise to fiscal taxes, and the second to extrafiscal taxes.
The market, contrary to what the left usually rants about, is not…