The regulatory text for the IBS and CBS is practically complete, but the date of its publication is still uncertain. Although the federated entities are committed, the finalization is hampered by the need for political consensus involving structural points, including the management of tax registries among the three levels of government and interpretations related to real estate and customs regimes.
The assessment was presented by João Pedro Nobre, advisor to the Executive Secretariat of the Ministry of Finance, during the Tax Dialogues event, promoted by... JOTA on Wednesday (February 25th). The Ministry of Finance expects negotiations to be concluded after the election of the presidency of the newly installed IBS Management Committee, scheduled for March 3rd, with the possibility of publishing the regulations by the end of next month, if the remaining disagreements are resolved. In total, about eight points are pending.
“The Management Committee swore in the members of the Superior Council on February 9th, and now, on March 3rd, it will hold the election for president and vice-presidents. Before these dates, we don't have political counterparts, because there are 54 representatives from states and municipalities,” the advisor explained.
According to Nobre, the regulation under development should function as a kind of operational "manual" for the new tax system, encompassing provisions of Complementary Laws 214 and 227, which structure the new model. Initially, the economic team considered submitting the regulation of LC 214 to public consultation before final publication, but the schedule was revised given the tight deadline for implementing the reform.
How the JOTA As previously mentioned, there will be a "common regulation" for CBS and IBS, changing only the reference to the responsible federative entity. "Not all doubts will be resolved in the regulation. There will be issues addressed in a subsequent act, second revision, consultation solution or other instruments," said Nobre.
The government expects to conclude the process by the end of March, aiming for legal certainty and testing of ancillary obligations before the effective start of the transition. This is because, in the first joint act of the Federal Revenue Service and the Management Committee, published in December, it was established that taxpayers will have three months, counted from the publication of the regulations, to adapt, without having to collect the IBS and CBS or suffer penalties.
Selective taxation is a priority.
The advancement of the bill that will address the Selective Tax (IS) rates is considered one of the government's tax priorities for 2026. It was expected to be sent after the parliamentary recess, but a legal adjustment related to the tax incidence on automobiles is still pending, being discussed jointly with the Ministry of Development, Industry, Trade and Services (MDIC).
“There is a legal discussion about how much will be in the bill and how much will be delegated to a sub-legal act. This still needs to be worked out with the participation of the MDIC, but technically [the text of the bill] is ready,” he said.
Vehicles have been included in the list of goods and services subject to the IS (Stamp Duty), but the base tax rate may be adjusted upwards or downwards according to technical, environmental, and energy efficiency criteria for automobiles. Among the factors listed in LC 214 are CO₂ emission levels, fuel consumption efficiency, engine power, technology used, and vehicle category.
The Treasury advisor stated that the text was finalized after a year of studies and dialogues with international organizations and economic sectors, and argued that the Selective Tax will have a regulatory, not revenue-raising, character, with the objective of discouraging the consumption of goods and services harmful to health and the environment, following internationally adopted practices. The proposal will largely replace the function currently performed by the IPI (Tax on Industrialized Products) — which will be the starting point for the IS (Selective Tax) rates.
“"There may be changes in the political decision or for technical reasons regarding the current IPI (Tax on Industrialized Products) line, but, in a general overview, we start from the IPI, with scaling when it is necessary to expand, reduce or equalize it," he said.
The advisor stated that the government developed simulators to calibrate different tax rate scenarios based on real fiscal data and international literature. In the case of alcoholic beverages and tobacco products, for example, multiple technical scenarios were developed, including alternatives suggested by the Ministry of Health. The final decision, Nobre emphasized, will be up to President Luiz Inácio Lula da Silva (PT), who will decide which model will be sent to Congress. According to him, the rapporteur for the process in both houses is still uncertain.
“The technical work involved developing scenarios. We ran a simulator throughout last year based on the Selective Tax assumptions, and it allows us to calibrate tax rates. In the case of alcoholic beverages, there is disagreement between sectors and political discussion. We presented two scenarios to the president, explaining the consequences and technical impacts. In addition, as a commitment to the Minister [of Health, Alexandre] Padilha, we also presented a scenario with alternatives proposed by the Ministry of Health. In some cases, there are three scenarios; in others, two. The president decides, and may even disagree,” he explained.
Internal assessments suggest that the electoral context may hinder the process, although the government maintains that the selective taxation does not represent the creation of a new tax, but rather a replacement of part of the burden currently levied via IPI (Tax on Industrialized Products). According to Nobre, the logic of the model is to allow higher taxation on specific products to contribute to reducing the overall rate of CBS (Contribution on Goods and Services) and IBS (Tax on Goods and Services), thus decreasing the tax burden on the rest of the economy.
CBS reference rates undefined
The definition of the CBS tax rates is still under technical development by the Federal Revenue Service, through the Center for Tax and Customs Studies (Cetad), in conjunction with the Federal Court of Accounts (TCU). According to Nobre, part of the methodology has already been sent to the TCU for validation, as foreseen in LC 214.
A first version of the calculations should be sent to the TCU (Federal Court of Accounts) in September. However, the public disclosure of the rates should only occur after October 31st, when the court will send the result to the Federal Senate, which is responsible for setting the percentages by resolution. "From then on, everyone will know the rate, which will be mandatory for the following year," he stated.
While the exact figures are not yet known, the Ministry of Finance is advising companies to begin adapting to the new model. "Don't wait for the rate to be published. It's important to understand the cost matrix and the new tax credits now," advised the advisor.
IOF and cryptocurrencies on the radar.
During the event, the advisor also mentioned that a public consultation regarding the application of IOF (Tax on Financial Operations) on cryptocurrencies should be published by next week. According to him, the text is already finalized. Information circulating in the press suggests that the Treasury's idea would be to start taxing the purchase of virtual assets, which are currently exempt from IOF, providing an exemption for individuals who purchase up to R$ 10,000 per month in cryptocurrencies.
“"We are trying to do this in the most transparent way possible, putting the rules into play, explaining what the intention is and detailing the reason why we are placing this burden on public consumption," said Nobre during the Tax Dialogues.
Source: www.jota.info