Tax rapporteur withdraws taxation on plastics: “Sector entered into pandemonium”

Senator Eduardo Braga (MDB-AM), announced, this Monday (9), the removal of disposable plastic items from the list of products taxed by the Selective Tax (IS).

The announcement was made at a press conference this afternoon. In the report, released in the morning, the senator included products taxed by the IS, which will affect goods and services that are harmful to health or the environment.

The rate would be defined by means of ordinary law with application to products such as bags, cutlery, straws, plates and Styrofoam trays.

However, according to the rapporteur, the inclusion of the items was a “mistake” and left the sector “in pandemonium”.

“I am making an error in this regard because the sector today went into pandemonium with what was presented in the report,” he said. “I am making an errata, therefore removing what was included in the text”.

Selective Tax

In the report, Braga included weapons and ammunition, including their parts and accessories, in the list of items taxed by the Selective Tax. During the vote in the Chamber, deputies tried to include the items on the list, but were defeated in a vote in the plenary.

The list of products taxed by IS also includes:

  • vehicles;
  • vessels and aircraft;
  • cigarettes;
  • alcoholic beverages;
  • sugary drinks
  • mineral goods;
  • apostas on-lin (bets).

Analysis of the opinion

The text was filed in the Senate system and should be read at a meeting of the Constitution and Justice Commission (CCJ) this afternoon. The report is expected to be voted on by the committee on Wednesday (11).

as to CNN showed, the intention of the president of the Senate, Rodrigo Pacheco (PSD-MG), is to take the proposal to the plenary on the same day and vote on it by Thursday (12).

The project regulates the application of the Tax on Goods and Services (IBS), the Contribution on Goods and Services (CBS), and the Selective Tax (IS), the new taxes created by the tax reform on consumption enacted in 2023.

The proposal is one of the government’s priorities this year. The new taxes will gradually replace five taxes currently charged (PIS, Cofins, IPI, ICMS and ISS). According to the text approved by the Chamber, the general tax reform rate, made up of the sum of IBS and CBS, is estimated between 26.5% and 28%.

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