Brazil Treasury negotiates lower sin tax rate, collection delayed to 2027

Brazil's Treasury Secretary Durigan forecasts a lower rate for the new 'sin tax' (imposto do pecado) than initially planned, aligning it with the current IPI burden. However, collection of the tax is delayed until 2027, potentially causing a revenue shortfall of nearly R$ 4 billion in January. This fiscal adjustment is part of broader tax reform negotiations, with uncertainty over final rates and timing.

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