Brazil defines CBS tax rates for fuels amid tax reform transition

Brazil's Ministry of Finance has established specific tax rates for the Contribution on Goods and Services (CBS) regarding various fuels. Under Ordinance No. 3.074/2026, the rates include R$ 0.7925 per liter for gasoline, R$ 0.1922 for anhydrous ethanol and hydrated ethanol, R$ 0.3515 for diesel oil, and R$ 0.1480 for biodiesel. Other specified rates include R$ 0.1677 for LPG (excluding domestic use), R$ 0.0712 for aviation kerosene, and R$ 0.3403 per kg for fuel oil.

As part of the national tax reform, the CBS is scheduled to become due in January 2027. Currently, 2026 serves as a testing period with a symbolic 1% rate. Data from the Federal Revenue indicates that 86% of invoices issued by companies required to highlight the CBS have complied with the new requirement, totaling approximately 3.7 billion invoices. The transport sector shows the highest technical adaptation rate at 87%, followed by communications, retail, and industry.