Brazil: Reduction in the Tax Rate on Industrial Products

published on 11 March 2021 | reading time approx. 2 minutes

In February 2022, Decree n° 10,979/22 was published, which modified the provisions of the Tax on Industrial Products Incidence Table – TIPI (Decree n° 8,950/16).

From the standard, the “IPI” rates are reduced in the following terms:

By 18.5 percent for products classified under heading codes 87.03 (motor vehicles);
By 25 percent for products classified in the other codes.

As an example, vehicles classified under NCM 8703.23.90, which were previously taxed at 25 percent, are now in effect at a rate of 14.67 percent.

The tax reduction is not applicable to tobacco and its manufactured substitutes, as well as to products specified in the legislation whose rates are fixed and determined according to energy efficiency indices and other factors.

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