The provisional measure setting rates on alcoholic drinks and soft drinks, expected on Tuesday, was pushed back until a new meeting with Lula
Brazil's federal government has once again postponed the provisional measure that sets the rates of the Selective Tax, the tax-reform levy that will apply to alcoholic drinks and soft drinks, among other products. The text was expected to be sent to Congress on Tuesday, November 3, according to Monitor do Mercado, but President Luiz Inácio Lula da Silva's meeting with Finance Minister Dario Durigan was moved to Wednesday, when the measure should be released, according to Tribuna do Sertão. As of this writing, the text had not been published.
The Selective Tax was supposed to start being collected on January 1, 2027. Because the law requires a 90-day interval between the creation of a tax and its collection, the so-called noventena, the measure would have had to come out by October 2. The government chose to send it after the second round of the elections, on October 25. As a result, collection should only begin in February 2027.
The delay is expected to open a gap in January revenue, estimated at R$ 4 billion, according to Monitor do Mercado. Durigan said he had reached an agreement with the affected sectors to temporarily keep the IPI tax on these products in January 2027; keeping the IPI, however, depends on a change to the Constitution. Besides drinks, the Selective Tax will hit cigarettes, polluting vehicles, mineral extraction, betting and gaming.
The rates for drinks have not yet been presented. Complementary Law 214, of 2025, provides for alcoholic drinks a rate on price combined with a fixed rate, and a stepped increase from 2029 to 2033, as the ICMS state tax on these products falls. According to a Finance Ministry source interviewed by JOTA in June, the charge should combine an amount per liter of pure alcohol with a second rate, which could be single or vary by alcohol content. The Health Ministry favors a single rate, according to the Contábeis website.
Sources: Tribuna do Sertão (November 3, 2026), Monitor do Mercado (November 3, 2026), JOTA (June 2026), Contábeis (2026).
