2024-11-29 17:25:00
Os Mail face an unprecedented financial crisis. The state-owned company recorded a loss of R billion in the first nine months of 2024, a value that contrasts with the Negative R$824 million of the same period in 2023. One of the factors that worsens the situation is precisely the end of tax exemption for imports of up to US$ 50a measure that became known as the “blouse tax”.
Summary of what you need to know:
- Mail accumulate record loss of R$2 billion in 2024, tripling the losses from the previous year.
- The end of tax exemption for purchases of up to US$50 drastically reduced the volume of international imports.
- The state-owned company’s revenue from international operations fell from R$3.3 billion to R$3.1 billion in nine months.
Brazilians stopped importing and Correios is impacted
The new taxation came into effect in August and has already had visible impacts. First, it is clear that Brazilians have stopped buying on international platforms such as Shein e AliExpress which resulted in a drop in 40% on imports.
As a result, the Post Office’s revenue international operations (cross border) between July and September fell from R$ 1.3 billionin 2023, to just over R$ 1 billion in the same period this year. The reduction in order volume not only decreased revenue, but also affected the company’s logistics and operational efficiency.
In practice, the measure implemented by the Lula government to increase tax revenue ended up discouraging Brazilians from making purchases on international websites. Products that were previously affordable became more expensive, and consumers began to look for alternatives in the domestic market, reducing demand for delivery services.
Now, Correios is looking for new strategies to maintain its relevance and overcome the drop in revenue, but the scenario suggests that, without significant changes, the negative numbers could persist.
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#imports #increases #Post #Office #losses
What specific steps is Correios taking to address its financial losses and remain competitive in the market against e-commerce giants and private couriers?
## Mail Facing Record Losses: What Went Wrong?
**(INTRO MUSIC)**
**HOST:** Welcome back to the show. Today we’re diving into a critical issue impacting not just the postal service, but the Brazilian economy as a whole: the staggering losses being incurred by the state-owned Correios.
Joining us today is [GUEST NAME], an expert on economic policy and logistics. [GUEST NAME], thanks for being here.
**GUEST:** It’s a pleasure to be here.
**HOST:** Let’s start with the numbers. Correios has recorded a staggering R$2 billion loss in the first nine months of 2024. That’s a sharp increase from the negative R$824 million in the same period last year. What’s driving this dramatic financial slump?
**GUEST:** There are a few key factors at play here. One of the most significant is the end of the tax exemption on imports valued up to US$50, affectionately known as the “blouse tax.” This measure undoubtedly brought much-needed relief to consumers, but it significantly impacted the Correios’ bottom line.
**HOST:** So, essentially, the Correios were relying on processing a large volume of these smaller-value international shipments?
**GUEST:** Exactly. They were handling a massive influx of packages, and the “blouse tax” exemption fueled that growth. Now, with the exemption gone and consumers potentially looking for alternative import channels, the Correios is experiencing a significant decline in revenue.
**HOST:** Are there other contributing factors beyond the loss of the “blouse tax”?
**GUEST:** Absolutely. The rise of e-commerce giants and private courier services has also put pressure on the Correios. These companies often offer more competitive rates and faster delivery times, forcing the Correios to adapt and compete in a rapidly evolving market.
**HOST: [GUEST NAME],** what are the potential consequences of these ongoing losses for the Correios and the Brazilian public?
**(Continue with a discussion on the potential consequences – risk of privatization, impact on postal services, economic impact, etc. Conclude with a brief summary and thanks to the guest.)**
