Minister says new taxes do not increase tax burden

The Minister of Finance, Dario Durigan, stated this Thursday (5) that the two new taxes that come into force from the beginning of 2027 do not represent an increase in the tax burden. According to him, the Selective Tax and the Contribution on Goods and Services (CBS) replace existing taxes.

"We have to consider that these are two new taxes, while we ended up with five. They are two taxes that provide rationality and unify legislation on consumption", said Durigan. "So there will be no increase in burden. We will gain transparency and rationality in consumer taxation."

The two taxes were created by Constitutional Amendment 132/2023, known as Tax Reform.

Provisional Measure (MP) 1,399/2026, which defines the rates and complementary rules for the Selective Tax, was published this Wednesday (4) in the Official Gazette of the Union. The text has already been sent to Congress, according to the minister.

The Selective Tax replaces the Tax on Industrialized Products (IPI) and will apply to goods and services considered harmful to health or the environment.

"It will focus exclusively on alcoholic beverages, soft drinks, sugary drinks, tobacco, cars, boats. So, there are a few items. With the end of the IPI for the industry as a whole, the industry will be exempted, and we will now have the selective tax on these few sectors."

Durigan hopes that the MP will advance quickly in the National Congress, since the matter is “well agreed upon” and it was the Legislature itself that approved the creation of the tax.