The Federal Senate approved, on the afternoon of this Thursday (12), the basic text of the tax reform regulations. There were 49 votes in favor and 19 against. The reform regulations deal with the rules governing the incidence of new taxes on consumption: the Contribution on Goods and Services (CBS), at the federal level, and the Tax on Goods and Services (IBS), at the state/municipal level. In addition, there will be the Selective Tax (IS), the so-called “sin tax”, which is a surcharge applied to certain products and services considered harmful to health and the environment.
These new taxes are a unification of five taxes (ICMS, ISS, IPI, PIS and Cofins), approved in a constitutional amendment promulgated at the end of last year. The transition to the new model will be gradual, between 2026 and 2033.
In the morning, the text, reported by senator Eduardo Braga (MDB-AM), had been approved by the Constitution and Justice Commission (CCJ), before going to the plenary. Now, senators continue to vote on several highlights of the main text, which can change it. One of these changes, for example, was the exclusion of firearms and ammunition from the Selective Tax.
The amendment with this exclusion had already passed the CCJ, but another was re-presented, in plenary, so that these items would once again be surcharged. The measure was defended by the rapporteur and senators from the government base, but did not obtain the necessary 41 votes. As a result, weapons and ammunition will not pay additional taxes.
Another item excluded from the “sin tax” was sugary drinks, such as juices and processed soft drinks. Braga’s opinion was maintained, and confirmed in plenary, the exemption for 22 products from the basic food basket, including meats and cheeses.
The senators continue analyzing the highlights. At the end of the vote, the project will return to the Chamber of Deputies, which will be able to maintain or remove points approved by the Senate, giving the final word on the regulation.
*Text being updated.
