Selective Tax: delay leaves companies unsure of what they will pay
The government has until this Saturday (3rd) to issue an MP establishing the rates for the Selective Tax, but the regulation may be postponed until after the elections.
TL;DR
- The government has a deadline of Saturday (3rd) to establish the rates for the Selective Tax (IS) via a provisional measure (MP).
- The IS, part of the tax reform, is set to take effect on January 1, 2027, targeting products and services harmful to health or the environment.
- A potential delay in publishing the final IS rules, possibly until November, is being considered due to electoral risks.
- If delayed, the government may need to increase the general CBS rate to compensate for estimated revenue shortfalls from the IS.
- The delay could also temporarily reduce taxation on targeted products, hindering the IS's goal of discouraging consumption.
- Uncertainty surrounding the IS rates and effective start date creates significant insecurity for businesses, impacting pricing, contracts, and investments.
- Companies are advised to plan for various scenarios regarding tax rates and start dates, review contracts, and adjust pricing strategies.
- The inclusion of 'bets' (betting companies) in the IS scope adds another layer of complexity, with expected revenue from this sector also needing compensation.