Government publishes MP for Selective Tax rates for 2027

The federal government published, this Wednesday (4), Provisional Measure 1,399/2026. The text defines the rates and complementary rules of the Selective Tax, which will apply to goods and services considered harmful to health or the environment, from February 2, 2027.

The tax was established by Constitutional Amendment 132/2023, known as Tax Reform, and will replace the Tax on Industrialized Goods (IPI) for this type of product.

The MP published in the Official Gazette defines the transition rules from the current tax model to the new system. The regime established by the text will be temporary and will remain in force until December 31, 2027.

During this 11-month period, the Selective Tax rates applicable to vehicles, aircraft, vessels, smoking products, alcoholic beverages and sugary drinks will correspond to the current IPI rates, after applying specific conversion factors.

According to the Civil House of the Presidency of the Republic, the MP establishes sustainability and energy efficiency criteria for defining the rates applicable to vehicles, aircraft and vessels.

Some categories of vehicles will have a zero rate, including those purchased by people with disabilities or autism spectrum disorders and by professional drivers who use the car in the rental category (taxi). Vehicles with a sustainable version registration, granted by the Ministry of Development, Industry, Commerce and Services, will also benefit.

The Selective Tax will also apply to trucks with a total gross weight equal to or greater than 3,500 kilograms, except pickup trucks, as well as vehicles, aircraft and vessels with specific technical characteristics intended for operational use by the Armed Forces or public security bodies.

Extracted mineral goods will have tax rates reduced to zero until December 31, 2027. The permanent regime for these items will be the subject of specific legislative discussion. Lotteries such as Mega-Sena, Lotofácil and Loteca will have a rate of 0.5%.

Along with this provisional measure, a proposed amendment to the Constitution (PEC) will be presented to Congress to extend the incidence of IPI on goods harmful to health or the environment, until the Selective Tax is in full effect. The objective is to avoid tax exemptions on products that are harmful to health.

Any increase in the estimated collection from the Selective Tax will be offset by an equivalent reduction in the reference rate and the estimated collection of the Contribution on Goods and Services (CBS). The opposite will occur if there is a drop in revenue.