Brazil Considers Annual Impact Assessment for Selective Tax

Brazil's Chamber of Deputies is reviewing a bill (PLP 30/25) proposing annual impact assessments for the Selective Tax (IS), instead of the current five-year evaluations. This amendment to Law 214/25, which regulated the tax reform, aims to provide more frequent evaluations of the IS's effectiveness on social, environmental, and health policies. The IS taxes products harmful to health or the environment, such as cigarettes and polluting vehicles. Bill author Deputy Nilto Tatto argues that the tax's strong link to the environment requires constant adaptation to fulfill its extra-fiscal function. The bill will be analyzed by several committees before heading to the Chamber's Plenary and then the Senate.