In brief

The government sent Congress the Selective Tax decree.

The transition rule applies until end-2027.

What we know

04

  1. Verified fact · material

    The government sent Congress on November 4, 2026 MP 1,399/2026 regulating the Selective Tax.

    Submission.

    Sources[01][02]

  2. Verified fact · material

    The MP regime runs until December 31, 2027, and the Executive is due to submit by May 31, 2027 a bill with rates from 2028.

    Timeline.

    Sources[01][02]

  3. Verified fact

    According to Gazeta do Povo, during transition rates match current IPI after conversion factors.

    Rates.

    Sources[01]

  4. Verified fact

    According to Correio Braziliense, collection starts in February 2027.

    Start.

    Sources[02]

Transmission to assets

Market read-through

The MP sets the IPI-to-new-tax transition without changing the short-term burden.

Portfolio impact

01
Bebidas e fumouncertain

New selective tax.

Neutral transition.

What would change the view: High rates.

sector5% confidence

Direction is an explanatory hypothesis, not a forecast or recommendation.

Next signals

What to watch

  • MP progress
  • 2028 rate bill

Limits of the reporting

What remains uncertain

  • Rate values are not in the sources.

Full sources

02
01
Gazeta do PovoGoverno envia ao Congresso MP que regulamenta imposto do pecadoindependent newsroom
02
Correio BrazilienseGoverno envia MP do imposto do pecado ao Congresso Nacionalindependent newsroom
06