government eliminates selective mining tax for 2027
Provisional measure published in the Official Gazette establishes a temporary zero rate for the extractive sector.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM INFOMONEY · 2 MIN
The federal government published Provisional Measure No. 1,399/2026 in the Official Gazette on Wednesday (4), defining the rules and calculations of the Selective Tax. According to information from InfoMoney, the new standard establishes a zero tax rate for mining activity during the year 2027.
According to the data collected, the temporary exemption granted to the extractive sector will come into effect from February 2, 2027, the official start date for the collection of the tax. The exemption has a determined expiration date and ends its activities on December 31, 2027, according to InfoMoney.
The previous legal framework, established by Complementary Law No. 214/2025, already provided for a ceiling of 0.25% for the incidence of tax on minerals. Furthermore, the Selective Tax has the function of replacing part of the old Tax on Industrialized Products, as detailed by InfoMoney.
While mining provides a temporary breather, the new tax will fall heavily on vehicles, vessels, aircraft, cigarettes, alcoholic beverages, sugary drinks and gambling. The sending of the government MP detailing the automotive sector and the tax rates was highlighted by Gazeta do Povo and Diário do Poder.
What changes for the investor
The temporary relief brings short-term predictability to the mining sector, while the consolidation of the Selective Tax reorganizes the tax burden on different production chains in the economy. Investors must monitor the fiscal and operational impacts of the new rates on the affected sectors.
Automatically translated from Portuguese.
