The socialist dictator of Brazil, Lula da Silva, implemented a new tax called the “Sin Tax”, which will affect cigarettes, alcoholic beverages, vehicles, planes and even boats.
On Wednesday, November 4, the Brazilian regime published Provisional Measure 1,399/2026, which establishes the rates and rules for collecting the tax for 2027.
This tax was created after Lula's last tax reform, and it extends the tax burden to different sectors of the economy.
On the grounds of taxing products and activities considered "harmful to public health" or the environment, the Government established percentages that will reach both consumer goods and vehicles and means of transport.
Lula da Silva.
One of the central points of the regulations is the incorporation of cars, which could face a rate of up to 30%, according to industry estimates and regulations
.
Aircraft will have a tax of 6.8%, while motor boats will have to face a rate of 12%. In this way, the tax will also cover the purchase and use of goods that go beyond the products traditionally associated with this type of tax
.
The scheme also contemplates charges on different consumer products. Cigarettes and cigars will be taxed at 66.7%, with an additional 3.50 reais per package
.
Distilled beverageswill have rates of up to 24%, while wines will reach 8%.In the case of beer, the final tax will be 4.2%, and soft drinks and other sugary drinks will have a rate of 2.6%. The bets, on the other hand, will be taxed at 0.5%
. Lula da Silva.
How Lula's tax on cars and aircraft
Provisional Measure 1,399 establishes a gradual implementation and sets specific rules for alcoholic beverages, sugary drinks, cigarettes, vehicles,
aircraft and extracted mineral resources.
The rates will be calculated taking as a reference the parameters of the Industrialized Products Tax (IPI), using conversion factors established in the regulations. For cars, criteria such as energy efficiency, propulsion technology, recyclability and structural performance will be taken into account
.
The measure also provides for some exceptions. Vehicles purchased by people with disabilities, people with autism spectrum disorder and taxi drivers who meet legal requirements will have a zero tax rate. Vehicles classified as "sustainable “will also be exempt
.
In addition, trucks and vehicles intended for the operational use of the Armed Forces and public security agencies will be excluded from the tax. This exception, however, does not apply to pickup trucks
.
The schedule states that the Government must submit to Congress, before May 31, 2027, a bill with the final rates that will take effect in 2028.
Meanwhile, Lula's measure plans to extend tax pressure to a wide variety of products, cars and means of transport, with an impact that will reach different sectors of the Brazilian economy.
