selective taxation of vehicles for 2027 is regulated by tax reform

The collection of the so-called Selective Tax on automobiles in Brazil is scheduled to begin on February 2, 2027, according to Estadão. The taxation, known as the sin tax, was created by the tax reform to fall on goods assessed as harmful to collective well-being or nature.

The regulations for the initial application cycle were defined through Provisional Measure 1,399/2026. The official rule was made public on the night of Wednesday, the 4th, in an extraordinary supplement to the Official Gazette of the Union, according to Estadão.

While the government maintains that the rates foreseen for 2027 only maintain the current tax burden, experts point out concrete risks of vehicles becoming more expensive. Furthermore, automakers express strong concern about not knowing the exact level of taxes that will be in force from 2028 onwards.

What changes for the investor

The advance of the Selective Tax and the uncertainty regarding the future tax burden place the automotive sector under caution, impacting the cost and margin perspectives of listed automakers. For those who operate on the stock exchange, the scenario requires constant monitoring of regulatory impacts on industrial activity and vehicle consumption.

Automatically translated from Portuguese.