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STF Sets Oct. 17–24 Virtual Vote on Restoring Brazil's Beverage-Tracking Sicobe

Justices will weigh a TCU order against budget-law concerns flagged by relator Cristiano Zanin.

Overview

  • The Supreme Federal Court scheduled a virtual plenary from Oct. 17 to 24 to decide whether the TCU can force the reactivation of Sicobe, which was shut down in 2016.
  • Minister Cristiano Zanin's April injunction that halted the TCU order remains in effect, citing a potential unbudgeted tax benefit and possible breach of the Fiscal Responsibility Law.
  • The federal government argues reactivation would forgo about R$1.8 billion per year in revenue, asserting the funds could instead support hiring roughly 4,300 tax auditors.
  • Sicobe recorded production volumes for beer, soft drinks and bottled water under Receita Federal oversight and did not assess beverage quality or regulate distilled spirits, which are controlled by seals.
  • The case advances as the Health Ministry reports 24 confirmed methanol poisonings and five deaths, with many suspected cases under investigation largely in São Paulo.