Brazil sets selective tax rates for harmful products
Business conditions in Brazil are deteriorating due to the new selective tax affecting retailers and a severe health crisis in Manaus impacting public services.
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The Brazilian government is set to publish a provisional measure establishing the rates for the new Selective Tax, according to O Globo. Finance Minister Dario Durigan stated the tax, part of the tax reform, targets products harmful to health and the environment. Known as the "sin tax," it will come into effect in February, following the mandatory 90-day period after publication. This tax aims to discourage consumption of these products by increasing their prices.
Impact Retailers of products deemed harmful face increased costs from February due to the new Selective Tax.