CBS rate reaches 11.3% after TCU decision and surprises the market
According to Gazeta do Povo, the rate was well above the initial projection of around 9% and, added to the IBS, would take the charge to 30%.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM GAZETA DO POVO · 2 MIN
The Contribution on Goods and Services (CBS), which replaces PIS and Cofins, gained a rate of 11.3% after a decision attributed to the Federal Audit Court (TCU), according to Gazeta do Povo. The number surprised the market as it was well above the government's initial projection. The report does not inform which act or norm formalized this rate.
Before the decision, the government projected around 9% for CBS. According to the report, the Executive reached 26.5%, without the text making it clear whether the number referred only to CBS or to the entire system.
CBS integrates a dual VAT model: it replaces PIS and Cofins, while IBS remains with states and municipalities. According to the estimates mentioned, the IBS would reach 18.7%, and the sum of the two rates would reach 30%.
According to the text, the TCU calibrated the rate so that the collection is equal to the historical average of PIS, Cofins and IPI. The result, however, was enhanced by the benefits and exceptions approved by Congress. In international rankings cited by the report, Brazil would be at the top, ahead of Hungary, the current record holder.
CBS's effective collection begins in January 2027. For services and companies in presumed profit, the report points out that the rate could rise from 3.65% to more than 11%. Experts estimate that Simples Nacional could lose competitiveness, because it becomes more difficult to generate credit for large customers, and that long-term contracts and government purchases will require price revisions.
What changes for the investor
The point of attention for those who follow companies is the effect on margins and revenues. Companies with long-term contracts and with the government as a client will have to review prices, and the greater burden on services tends to weigh on service provision sectors and Simples Nacional businesses. The report does not detail price or share reactions, and this text does not risk projections about this. As the charge only begins in 2027, the real effect will still depend on how each sector responds.
Automatically translated from Portuguese.
