expanded taxation: new selective tax rules come into force in 2027
Provisional measure published in November 2026 details the rates and products targeted by the new federal taxation.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM GAZETA DO POVO · 2 MIN
The Brazilian tax burden gains a new chapter with the regulation of the so-called Selective Tax, popularly known as the sin tax. According to Gazeta do Povo, the collection is scheduled to begin on February 2, 2027, based on Provisional Measure 1,399/2026, published on November 4.
According to Gazeta do Povo, the official justification presented by Alexandre Tortato aims to mitigate the demand for goods and activities that are harmful to collective well-being or nature. The normative text requires approval of the MP in Congress by the end of 2026, with a proposal to temporarily extend the IPI to January 2027 if there is a delay in parliamentary validation.
The designed model foresees transitional rates applied during the year 2027 and a definitive format from 2028 onwards. As reported by Gazeta do Povo, the list of taxed items covers cigarettes, tobacco, alcoholic beverages, sugary drinks, vehicles, aircraft, vessels, mineral goods, lotteries, betting and fantasy sports.
The initial percentages vary depending on the sector in 2027. Data from Gazeta do Povo indicate a rate of 4.2% for malt beer, 8% for wines and fermented drinks, and up to 24% for strong alcoholic drinks such as vodka, gin and whiskey. Sugary drinks, such as soft drinks, account for 2.6%.
For the tobacco segment, taxation is significant, registering 66.7% plus a fixed charge of 3.50 reais per twenty units for cigarettes and cigarillos, in addition to 37.5% for other tobacco products. In the automotive sector, Gazeta do Povo details that passenger cars will have a base rate of 6.3%, with variations defined by motorization, efficiency, safety and recyclability.
What changes for the investor
The implementation of new rates and the tax redesign via provisional measure directly affect the financial planning of companies listed in the impacted sectors. Monitoring the legislative progress in Congress until the end of 2026 becomes central to the assessment of operational costs and future margins of companies exposed to the consumption of specific goods.
Automatically translated from Portuguese.
