[gwmnxnp_516a]

Brazil has only itself to blame. Not only Apple products, but several other technology items are pretty expensive due to the VAT (Value Added Taxes), namely, ICMS - state vat tax, IPI - federal vat tax for manufactured products, IOF - federal government tax that incurs on financial trasactions, and high import tariffs. All tariffs and taxes almost doubles the price of everything imported and whenever a product is sold to a distributor and the final seller, state and federal VAT taxes adds up increasing the price even further. Unlike the global north, most of taxes revenues in Brazil come from VAT taxes since brazilian middle class is not willing to pay higher income tax and at the same time they want US-style taxes and European-like lifestyle, such as ree healthcare and free college that are paid in Europe mostly through income tax revenues and dividend tax revenues. So despite higher taxes, it it is not that bad for the upper class and those who can afford Apple gadgets as they would have to pay higher income taxes if they moved to Europe, US or other countries. In Brazil even dividends are not taxed, while in US and Erope they are taxed and companies have to use stock buybacks in order to avoid double taxation.