The regulation of the tax reform proposed by the government of Luiz Inácio Lula da Silva (PT) provides for the taxation of purchases made through digital platforms, including international ones such as Shein and Shopee.
On the other hand, consumers should feel relief when purchasing food — even those that were left out of the National Basic Food Basket, which is exempt from charges. Low-income families will still have part of the tax paid returned through the so-called “cashback”.
The details of the project that regulates the operation of the new tax system from 2026 onwards were presented this Thursday (25) by the Ministry of Finance.
The government claims that it adopted as a premise the attempt to make the system more progressive, that is, charging more from those with higher incomes and easing the burden on those who earn less.
Under the project, purchases of products or services made through digital platforms will be taxed by the new VAT (Value Added Tax) from 2026, when the new taxes come into effect.
The charge must apply to all online platforms, based in Brazil or abroad, and will cover purchases of all amounts, including those of up to US$50 made by individuals.
The Federal Revenue currently has the Conformal Remittance program. The program exempts shipments of up to US$50 destined for individuals from Import Tax, in addition to giving priority to these goods in customs clearance. These purchases are also free of PIS/Cofins. In return, the company undertakes to follow tax rules.
The states, in turn, apply an ICMS charge of 17%.
When the reform comes into effect, international purchases will have to pay two new taxes, the IBS (Tax on Goods and Services) from states and municipalities and the federal CBS (Contribution on Goods and Services).
The new rules do not affect Import Tax, a tax that was not covered by the reform and which remains zero for international purchases up to US$50.
The extraordinary secretary for Tax Reform at the Ministry of Finance, Bernard Appy, said that there is no question of creating a new tax on these remittances, but acknowledged that the measure could result in increased charges on these purchases.
Today, the 17% ICMS rate is charged on the full price, which already includes the taxes charged on the good. The calculation “from the outside”, just on the value of the product, would result in an incidence of 20.5% — below the average rate of the new VAT, calculated at 26.5%.
“The difference compared to what it is today is small. It will be a very similar charge,” he said.
The secretary also highlighted that the states are currently discussing increasing the ICMS charge on remittances to 25%, which, according to him, would be the same as an “outside” rate of 33%. “It’s more than we’re going to tax. Depending on what the states do, we could even have a reduction,” he said.
According to Appy, companies domiciled abroad will have to register in Brazil to pay the tax. If they do not make payment, the buyer in Brazil will have to do so.
Federal Revenue tax auditor Roni Petterson Brito, who participated in the preparation of the proposal, assured that registration will be very simplified, as occurs in other countries.
BASIC BASKET
The government established a short list of 18 categories of products from the National Basic Basket, which will be fully exempt from the new taxes.
The products were listed considering the regional and cultural diversity of the country’s diet and ensuring a healthy and nutritionally adequate diet, requirements set out in the reform’s constitutional amendment.
The priority was to include the foods most consumed by the poorest population to ensure that the maximum possible tax benefit is appropriated by low-income families.
The list includes traditional rice and beans (two of the foods most consumed by Brazilians), as well as coconut, grains and flour. But the government left out all types of animal protein, which includes meat and dairy.
Even outside the list of products in the zero-rate basket, meat will have tax relief, according to the government. They will be subject to a reduced rate, equivalent to 40% of the standard rate (which results in a charge of 10.6%, if the government’s estimate is confirmed).
“Meat is already being exempted,” said Appy, citing the example of picanha, a frequent feature in Lula’s speeches since the 2022 election campaign.
Calculations presented by the government indicate that meat taxation could fall from the current 12.7% to 8.5%, in the case of the low-income population entitled to cashback. For others, the charge will be 10.6%.
The exclusion of meat from the Basic Basket with a zero rate has been criticized by agribusiness sectors and supermarkets, who defended a broader list. The government justified the decision with the argument that including these articles would lead to a “shock” in the average reference rate charged on other goods and services.
The rate would rise by 0.7 percentage points, reaching 27.2% — surpassing the current highest VAT in the world, in Hungary (27%).
The list of products in the extended basic basket, with a reduced rate, included beef, pork, lamb, goat and poultry, products of animal origin, as well as fish, fish meat and crustaceans. Even shrimp was on the list of products with lower taxes, as in some states it is a popular food, consumed by low-income people.
Products of animal origin considered luxury, such as foie gras, tuna, cod, caviar and lobster, were excluded from the list.
CASHBACK
In addition to the benefits of the Basic Basket, low-income families will be entitled to the refund of a portion of the tax paid on consumption, a mechanism known as “cashback”. Families with a per capita income of up to half a minimum wage (today, the equivalent of R$706) registered in the Single Registry of social programs will have access to the benefit.
The government estimates that the measure’s potential audience will be 28.8 million families or 73 million people, around a third of the Brazilian population.
The text provides for the return of 100% of the CBS and 20% of the IBS on the acquisition of bottled cooking gas.
On the electricity, water, sewage and natural gas bill, the cashback will be 50% of the CBS and 20% of the IBS — in these cases the refund will be given at the time of charging the operation, that is, in the form of a discount on the invoice itself. .
In other cases, such as supermarket purchases and others, the percentage of 20% will be valid for both taxes.
The Union, states and municipalities may set higher percentages, if they wish, as long as they are limited to 100% of the tax.
MEDICINES
The project also defined a list of medicines that will have zero IBS and CBS rates, which includes those offered by the government’s Farmácia Popular program.
On this list, what stands out is Viagra (sildenafil citrate), indicated to treat erectile dysfunction, but which is also used against pulmonary disorders.
A second list contains 850 types of medicines that will have taxes reduced by 60%. Among them is botox, the popular name for botulinum toxin, a chemical substance that works by preventing muscle contraction and is widely used by patients looking to reduce wrinkles and expression lines.
According to the program director of the Ministry of Finance Camilla Cavalcanti, the lists were created with the support of the Ministry of Health and also include reduced taxation for health services, medical devices, personal hygiene and cleaning, in addition to basic menstrual health care.
The lists are more comprehensive than the benefits that exist today with PIS, Cofins and ICMS. They include respirators, MRI and ultrasound equipment.
“We will have a very relevant reduction in the taxation of medicines not only because there was a lot of cumulative [pagamento de tributo sobre tributo]as well as its expansion [da lista]”Appy said.
The reform also provides for a fast track to promote the annual update of the list of medicines and also in the case of emergencies, as occurred with the Covid-19 pandemic.
