The Environmental Extrafiscality of the Selective Tax: a New Paradigm for Sustainability or an Old News?

Abstract

The present study analyzes the environmental extrafiscality of the selective tax from the perspective of sustainability and Brazilian tax reform. It investigates whether this tax represents an effective innovation or a redundant measure without material impact. Through bibliographic and documental analysis, the study examines the changes introduced by Constitutional Amendment No. 132 and Complementary Law No. 214, as well as the political and economic challenges that may limit its effectiveness. International experience is considered to assess its potential impacts on regulating the consumption of products harmful to the environment and public health. The study concludes that, although the selective tax represents a theoretical advance in environmental taxation, its effectiveness will depend on proper implementation. Furthermore, pre-reform fiscal measures, such as IPI tax rates on cigarettes and beverages, were already aimed at discouraging the consumption of these products, creating a certain sense of redundancy in relation to the newly adopted measures.