Provisional Measure No. 1,399/2026, published on November 4, 2026, established the Selective Tax (IS) rates for 2027, effective from February 2, 2027. Instituted by the Tax Reform, the tax will apply to goods and services considered harmful to health or the environment.
Although effective immediately, the provisional measure must be converted into law by the National Congress within 60 days, a period that can be extended once for an equal period.
The tax rates were defined based on those currently applicable to the IPI (Tax on Industrialized Products), taking into account conversion factors. Among the main ones, the following stand out:
- Malt beers: 4,2%;
- Wines: 8% to 16%;
- Cigarettes and cigarillos: 66.7% on the reference value, plus R$ 3.50 per twenty;
- Automobiles: base rate of 6.3%, adjusted according to sustainability criteria, energy efficiency and vehicle characteristics;
- Aircraft: 6,8%;
- Sugary drinks: 2.6%; and
- Prediction contests: 0,5%.
The provisional measure also provides zero rate For vehicles acquired by people with disabilities and taxi drivers, subject to legal requirements, as well as benefits for certain sustainable vehicles, vessels, and aircraft. The IS (Stamp Duty) will not apply to trucks covered by the exclusion rule nor to mineral goods during the transition period.
Small producers of alcoholic beverages will be able to benefit from reductions of 10% to 40% in tax rates, depending on the volume produced. Specific adjustment factors will be applied to imports.
The Executive Branch must present, by May 31, 2027, draft law with the applicable rates starting in 2028.
Our office is available to answer questions and assess the impact of the regulation on companies' operations.
