Lula Finalizes Brazil’s Consumption-Tax Overhaul With Vetoes and Unveils National Platform

Overview

• President Luiz Inácio Lula da Silva sanctioned the final implementing law (PLP 108/2024) creating the IBS management committee, with ten vetoes published in the Diário Oficial on January 14.
• A nationwide digital portal built by Receita Federal and Serpro is live in test mode, already processing real fiscal documents and designed to handle roughly 200 million operations per day.
• The transition sets 2026 as a non‑punitive adaptation year, with CBS and the selective tax starting in January 2027 and IBS phasing in from 2029 to fully replace ICMS/ISS by 2033.
• Key vetoes keep SAFs’ combined rate at 6% and block exclusions tied to player transfer revenues, with the government citing budget rules that prohibit new tax breaks without compensation.
• Other vetoes struck changes to ITBI timing, the scope of loyalty‑points taxation, Suframa’s exclusive authority, a broad carve‑out for certain liquid foods, and a rule on cashback for piped gas, and Congress may still decide whether to uphold them.