Government Decides to Include Tax Reform Revenues in the 2027 Budget
Economic team opts to project revenues from the new contribution and selective tax in the bill.
The economic team decided to incorporate into the 2027 Budget Draft the forecasted revenue from the Contribution on Goods and Services (CBS) and the Selective Tax (IS). The inclusion occurs while the Planalto Palace evaluates the submission of proposals related to the new taxes created by the Tax Reform.
The decision on tax reform revenue
The government has struck the decision to include in the 2027 Budget Draft projections of expected revenue from the new CBS and the Selective Tax. The decision was made after internal debates about the convenience of working with the new taxes or maintaining projections based on the current model.
The role of the contribution and the selective tax
The CBS will replace PIS, Cofins, and most of IPI. The Selective Tax will have a broader purpose than simply replicating IPI, aiming to discourage consumption of goods and services considered harmful to society.
The submission of proposals and the role of the audit court
For now, the decision foresees the presentation of the expected revenue numbers without opening data on the rates considered in the projections. Officially, the government must submit a rate proposal with its parameters for analysis and final definition by the Federal Court of Accounts by September 15, with a deadline until the end of October.
The discussion on the selective tax and economic sectors
In the case of the Selective Tax, the logic involves different rates depending on the product and the need to comply with the 90‑day period to take effect. The Ministry of Finance holds meetings with sectoral representatives, involving areas such as automobiles, tobacco, and beverages, to build agreements.
Expense scenario and fiscal target for the next year
In addition to the definitions on the reform taxes, the government must present a budget with a less stressed scenario around mandatory spending. The primary balance target for the next year is a positive surplus of 0.5% of GDP, equivalent to about R$ 73 billion.
With information from O GLOBO, Brasil 247.
Source: O GLOBO, Brasil 247