With the approval of the tax reform regulation in the Chamber of Deputies, the items that will be subject to the new Selective Tax (IS in Portuguese) are defined. Known as the “impuesto al sin”, it will be a type of recharge that will apply from 2027 to goods and services considered harmful to health or the environment. The new legislation now only depends on the sanction of President Luiz Inácio Lula da Silva (PT).

Complementary Bill Project (PLP) 68/2024, in the Chamber, recovered the extra tax on sugary drinks, a departure that had “been saved” in the Senate.

The Selective Tax will be an additional fee that will apply to each product. These tariffs must still be defined in the future, in specific ordinary laws. Therefore, these products will be recorded at 26.5% (the standard tax rate on goods and services established by the reform) more IS.

The IS will be recorded only once for the entire service, with any type of use of tax credits for previous operations or the generation of credits for subsequent operations being prohibited. Products intended for export are exempt from engraving.

The list of products that will be charged for is exactly what appears in the text sent by the Chamber. The first version of the report by senator Eduardo Braga (MDB-AM) proposes the inclusion of sugary drinks and weapons and ammunition in the list. These articles were eliminated during the vote in the Constitution and Justice Commission (CCJ in Portugues).