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Government publishes MP of the Selective Tax rates for 2027

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Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 05/11/2026, 18:24:24 UTC.

Briefings

The Brazilian government published a provisional measure on November 4, 2026, establishing the 2027 rates for the Imposto Seletivo, replacing the IPI. The new tax applies to goods and services harmful to health or the environment, effective February 2, 2027, with a temporary regime lasting until December 31, 2027. Key rates include 0.5% for lotteries and zero rates for specific vehicle categories and mineral products, while a transition period allows current IPI rates to apply for 11 months. The measure includes a proposed Constitutional Amendment to extend IPI liability until full implementation, aiming to offset potential revenue losses.

Key points

• The Imposto Seletivo replaces the IPI and applies to goods harmful to health or the environment, effective February 2, 2027.
• Lotteries like Mega-Sena and Lotofácil have a 0.5% tax rate, while specific vehicle categories and mineral products receive zero rates.

Context

This tax reform, originally enacted via Constitutional Amendment 132/2023, aims to replace the IPI with a new system targeting specific harmful goods. The provisional measure sets the 2027 rates, with a transition period allowing current IPI rates to apply for 11 months before permanent rates are finalized in 2028.

Limitations

Coverage is limited to the 2027 provisional rates and transition period; permanent rates for 2028 are not yet finalized. The measure includes a proposed Constitutional Amendment to extend IPI liability, but the specific legislative details of this amendment are not detailed in the source.

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