In an interview with InvestNews, our partner Camila Tapias commented on the Selective Tax, a new tax introduced by the tax reform that will take effect in 2027.
The tax, nicknamed the “sin tax,” is levied on products considered harmful to health or the environment, such as cigarettes, alcoholic beverages, sugary drinks, sports betting, vehicles, boats, aircraft, and mineral resources. It is levied in a single phase—at a single stage in the production chain—and the tax is added to the IBS and CBS, without replacing existing taxes. It will coexist with the ICMS until 2032 and with the IPI for products manufactured in the Manaus Free Trade Zone.
Key details regarding the new tax—such as applicable rates, calculation criteria, and ancillary obligations—have yet to be defined. The text of the law has not yet been submitted to Congress, and regulations may be issued via a provisional measure, which is keeping the productive sector in a holding pattern regarding the actual impact of the tax.
