government details selective tax for 2027 with focus on cigarettes and drinks

The federal government sent a provisional measure establishing the Selective Tax rates to come into effect in February 2027, as reported by Gazeta do Povo. The initiative replaces the current IPI for specific items and will have a unique impact on the sale of cigarettes, drinks, vehicles, aircraft and vessels, according to the data collected.

Also according to Gazeta do Povo, cigarette taxation will combine a percentage rate and a fixed amount per pack. In the case of cars, the charge will vary depending on the environmental performance of each model, with exemptions for electric cars or PCDs, while an adjustment factor for imported goods will increase the nominal rate from 24% to almost 35%.

Secretary Dario Durigan stated that the country's total revenue will remain unchanged with the arrival of the new tax, as published by Gazeta do Povo. The vehicle also pointed out that the tax structure does not generate tax credits for deductions in other phases of the chain.

For the text to be valid in 2027, Gazeta do Povo highlights that the provisional measure will need to be converted into law by the December 23rd recess. There is also a constitutional prohibition on changing the calculation basis through a provisional measure.

What changes for the investor

Operators and investors monitor the impacts of the new taxation on the affected sectors, especially given Gazeta do Povo's assessment of the risk of strengthening the illegal market and smuggling due to high rates.

Automatically translated from Portuguese.