The Brazilian Ministry of Finance and the IBS Management Committee have published Joint Ordinance MF/CGIBS No. 14/2026, establishing the methodology for determining the IBS (Tax on Goods and Services) and CBS (Contribution on Goods and Services) rates applicable to fuels subject to the specific tax regime established under Complementary Law No. 214/2025.

Under the new regulation, tax rates will be uniform nationwide, set at specific amounts per unit of measurement, and differentiated according to the type of fuel. The calculation will take into account both direct tax revenue, related to taxes levied on production, imports, and sales, and indirect tax revenue, associated with taxes on inputs, services, and capital goods that do not generate tax credits.

The CBS rates will be determined using this methodology starting in 2027. The IBS, in turn, will be phased in beginning in 2029, according to the following schedule: 10% in 2029, 20% in 2030, 30% in 2031, 40% in 2032, and 100% from 2033 onward.

The ordinance also establishes specific rules for biofuels, which must be subject to lower taxation than fossil fuels. For anhydrous ethanol and biodiesel intended for mandatory blending, the IBS rate will correspond to 90% of the rate applicable to gasoline A and diesel A, respectively.

For companies operating in the fuel sector, the measure provides greater predictability but also requires close monitoring of the calculations and tax rates to be published. These changes will have a direct impact on pricing strategies, tax assessment and compliance, and planning for the transition to the new tax system.

Sources:

Joint Ordinance MF/CGIBS No. 14/2026 – Official Document

COMSEFAZ – Joint Ordinance Defines How IBS and CBS Tax Rates on Fuels Will Be Calculated