SELECTIVE TAX IN LIGHT OF THE BRAZILIAN TAX REFORM

Abstract

This paper analyzes the selective tax (IS) established by Constitutional Amendment No. 132/2023 and regulated by Complementary Law No. 214/2025. The topic is of great importance, as it involves the use of taxation as a way to discourage the consumption of goods and services that are harmful to health and the environment, as well as to induce healthier behaviors in society. The objective of this paper is to critically assess whether the IS fulfills the constitutional purpose of protecting the fundamental right to health by inducing healthier habits in the population and reducing public spending on the health system, or if it is essentially a revenue-raising measure, with the potential to exacerbate social inequalities, favor certain economic sectors, lead to substitution by unwanted products, and increase the illegal market for counterfeit products. The methodology employed is bibliographic, descriptive, and explanatory, with an examination of works, studies, research, and recommendations from various entities. First, the constitutional regime of the IS and its main characteristics were addressed, followed by a discussion of the aspects of selectivity, extra-fiscality, and negative externalities. Next, from a critical perspective, the legislative options regarding the goods to be taxed were analyzed, with a focus on those related to health. Finally, the study concluded that the selective tax will not meet the extra-fiscal and corrective criteria, as it will be unable to improve the health of the population and may increase social inequalities and generate unwanted substitution effects, among other harmful effects on society.