The government has decided that the rates for the Selective Tax – levied on products harmful to health or the environment – will be proposed to the National Congress through a provisional measure (MP), to ensure that collection can begin on January 1st, as foreseen in the tax reform. The intention of the Ministry of Finance, according to Valor, is to submit the MP along with the Annual Budget Law Project (PLOA) for 2027, on the 31st of this month, or at the beginning of September.
The proposed tax rates should maintain the same tax burden as the Tax on Industrialized Products (IPI) currently levied on the affected sectors. The exceptions will likely be cigarettes and bets, which will probably pay the highest possible rate.
Source: Economic Value