Selective Tax: government defines rates for cigarettes, beverages, and cars
Government sends MP defining Selective Tax rates for 2027. Understand how the "sin tax" will affect the prices of cigarettes, beverages, and vehicles.
TL;DR
- The government introduced a Provisional Measure (MP) detailing the rates for the new Selective Tax, dubbed the 'sin tax'.
- The tax will apply to products detrimental to health or the environment, including cigarettes, alcohol, and polluting vehicles, starting February 2027.
- The objective is to discourage consumption of these products through higher taxation, replacing the current IPI on these items.
- Tax rates for vehicles will be proportional to energy efficiency, with electric or adapted models potentially exempt.
- Tributaries warn that the tax's design, including adjustments for imported products, could increase final prices.
- The tax's implementation faces constitutional hurdles, potentially delaying its effect from 2027 to 2028 if not passed by Congress before the year-end recess.
- A major concern is that high taxes on legal products could benefit organized crime through contraband and counterfeit goods.
- This could lead to a loss of tax revenue, reduced competitiveness for national industry, and exposure of the population to unregulated illegal products.