Luiz F. Nunes da Silva / Instruments

Keeping the IPI burden in the Selective Tax: what does it cost in excess?

Brazil’s Selective Tax enters the base of CBS, IBS and, where applicable, ICMS. The IPI it replaces did not. The two readings of the same promise of neutrality, from 2027 to 2033.

IS-01 v1.0.0 · simulation table

Product and assumptions

Example data: cigarettes at R$ 12.00 a pack of twenty. Replace with your product’s.

R$

The IPI the unit pays today, ad valorem and specific parts added.

R$

The base on which the ICMS differential is measured.

units
%

Declared assumption: 8.8% is a working value. Adjust if the Senate has already set it.

%

26.5% is the ceiling in art. 475, § 11, of Complementary Law 214/2025.

pct points

The product’s ICMS rate minus the standard rate. Incorporated into the Selective Tax from 2029 to 2033.

What this page does not have

The calculation above is the instrument’s own. What it lacks is the layer of documentation, attribution and responsibility of a professional application.

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Simulation table

  • IPI per unit reported by the user
  • Both readings and the path visible
  • Assumptions declared by the user
  • Unstamped
On request

IS-01 Calculation Memorial

  • IPI computed under the product’s rule
  • Each parameter with source and reading date
  • Step-by-step record and sensitivity
  • Version stamp, checkable by third parties
On request

Professional application

  • The case’s product, chain and ICMS regime
  • Real documents and data checked
  • Adversarial review and limits of the reading
  • Economist responsible

Enquiries: contact@luizfnunesdasilva.studio

What the instrument measures

The distance between two readings of “keeping the IPI burden”: one measured on the rate, which repeats the IPI amount in the Selective Tax, and one measured on the burden, which nets out the taxes generated on the Selective Tax itself.

What it does not measure

  • Not a guaranteed saving or a winning argument.
  • It does not say which reading is legally due.
  • It does not forecast the rates the law will set.
  • It does not measure pass-through to prices or demand response.

Where the method comes from

The Selective Tax is part of the base of ICMS, ISS, IBS and CBS (Constitution, art. 153, § 6, IV; Complementary Law 214/2025, art. 12). The IPI is outside gross revenue (Decree-Law 1,598/1977, art. 12, § 4) and outside the IBS and CBS base.

Transition: ADCT, arts. 127 to 129. Incorporation of the ICMS differential: Complementary Law 214/2025, art. 422, § 5, in equal steps from 2029 to 2033, as a declared assumption of the model.