Brazil's Lula issues provisional measure setting sin tax rates on alcohol and tobacco

Brazil's government issued Provisional Measure No. 1,399 setting selective tax (sin tax) rates: 4.2% on beer, 20% on cachaça, 2.6% on soft drinks, 8% on wine, 24% on whisky and other spirits, and 66.7% on cigarettes. The measure is part of the tax reform implementation, but its final approval depends on Congress, where it may face opposition. This signals a shift in fiscal policy that could affect consumer prices and industry margins.

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