Overview

• The Senate approved urgency to vote on the second-stage regulation that implements key IBS and CBS rules, with the rollout still set for a 2026 test, 0.1% rates in 2027–2028 and full IBS in 2033.
• The text defines how IBS revenue will be divided between states and municipalities and creates a 54-member committee to administer the tax.
• Rapporteur Eduardo Braga reset the rate-calculation reference window to 2024–2026 after warnings from municipalities about potential losses.
• Companies will be able to use or refund ICMS credits accumulated through the end of 2032 to offset charges under the new IBS.
• The package adds targeted provisions including exemptions for transport workers and nanoentrepreneurs below the income threshold, tax relief for PCD car purchases up to R$100,000, a phased sugar-drinks levy from 2029 to 2033, and ICMS collection on imported naphtha used for gasoline to curb fraud.