Monetary Policy Committee decides to increase Selic rate to 11.25%
The Monetary Policy Committee (Copom) of the Central Bank (BC) decided on November 6th to step up the pace of the increase in the Selic rate, which rose 0.50 percentage points, from 10.75% to 11.25% per year.
In its statement, the Copom highlighted its concern with fiscal policy and its influence on the dynamics of public accounts and monetary policy. Amid debates about the spending containment package of the government of Luiz Inácio Lula da Silva, the BC emphasized that the "presentation and execution" of structural reforms will contribute to a more favorable inflationary scenario and to the moderation of interest rates.
The Copom pointed out that it closely monitors how fiscal adjustments affect monetary policy and the prices of financial assets. The perception of uncertainty about the fiscal package raised the exchange rate, with the dollar closing last week at the second highest nominal level in history.
Donald Trump's victory in the United States has brought new economic uncertainties. Although Copom did not mention the election directly, the international situation remains challenging, especially with regard to the pace of economic slowdown and the stance of the Federal Reserve (Fed).
Trump's economic policy, which includes inflationary and protectionist measures, could impact the Fed's interest rate cut cycle and put pressure on emerging countries, such as Brazil.
Copom noted an increase in the dynamism of activity and the labor market. However, inflation is still above the target, with projections of 4.6% for 2024 and 3.9% for 2025, both above the target of 3.0%.
In view of these projections, the Central Bank aims to reach the inflation target in the second quarter of 2026. At the end of the day, the dollar, which reached R$5.86 in the morning, closed at R$5.67.
Government eliminates import tax on medicines and essential industrial supplies
The Executive Management Committee of the Foreign Trade Chamber (Gecex-Camex) decided, in a meeting held on November 11th, to reduce the import tax on a list of 13 items covering various sectors, including essential products for health and industry. Among the items benefiting from the new measure are medicines for the treatment of cancer, especially prostate cancer, as well as strategic inputs for the manufacture of medical gloves, blades for wind turbines, tires and agricultural pesticides.
Gecex's decision represents a significant change in the import tariffs on these products, which ranged from 3.6% to 18%, but have now been reduced to zero, facilitating access and reducing the import costs of items such as hydrogel contact lenses and films used in radiological procedures.
In addition to the reduction in rates for these 13 products, Gecex approved new Ex-Tariffs for 226 items classified as capital goods, and another 202 Ex-Tariffs for products classified under the Non-Produced Auto Parts Regime. These measures aim to allow the import at a reduced tariff of products with no equivalent production in the Brazilian market, strengthening the competitiveness and efficiency of local industries.
At another point during the meeting, the committee also approved a tariff increase for certain products, with the aim of protecting and stimulating domestic production and job creation. Among the items that had their tariffs increased were glass inputs for industrial use and photovoltaic cells, important components in the manufacture of solar panels, aiming to strengthen the local production chain.
Brazilian Federal Revenue Service opens consultation on Normative Instruction that will establish new DeCripto declaration
The Brazilian Federal Revenue Service released the draft Normative Instruction (IN) that will replace the Cryptoasset Declaration (DeCripto). The public consultation is intended for companies and other interested parties and will be open until December 6th.
DeCripto emerged as a need to inform about new types of cryptoassets and transactions with digital currencies. In addition, it incorporated the rules and concepts of the information exchange model for transactions with cryptoassets developed by the Organization for Economic Cooperation and Development (OECD).
It is also worth mentioning that DeCripto will capture information on the transfer of cryptoassets from abroad to Brazil, and vice versa, of digital currencies referenced to assets, of transmission to decentralized finance platforms and of fractionalization of non-fungible tokens (NFTs).
Through this new measure, the RFB is committed to continually reviewing and improving its normative acts, prioritizing legal certainty, ensuring tax justice and protecting the tax base in an ongoing effort to strengthen tax transparency.
Commission approves bill granting tax exemption to agribusiness startups
The Agriculture, Livestock, Supply and Rural Development Committee of the Chamber of Deputies approved a bill that exempts technology companies – startups – from agribusiness from federal taxes for two years. The proposal defines Agro Startups as companies that develop and market innovative products, services or solutions that meet the needs of the agricultural, livestock and aquaculture sectors.
The measure applies to companies that began operations before the law came into effect and that meet the innovation and growth potential criteria established in the regulation.
The original version created an incentive policy for all startups in the consolidation phase, through a differentiated tax regime, which provides, among other benefits, exemption from Income Tax (IR) for 12 months.
However, the rapporteur chose to restrict the proposal to companies linked to agribusiness. “The demand for food has been constantly increasing, a fact that requires ever greater efficiency in the production process”, she explained.
The approved text exempts individuals and legal entities that invest in agribusiness startups, for two years, from up to 5% of the Income Tax due.
The proposal also creates experimental regulatory environments for startups, known as “regulatory sandboxes”. These environments offer a controlled space where companies can test technological innovations under flexible regulatory supervision.
Split payment: government announces possible pilot of new system in 2026
The coordinator of the Working Group (GT) created to develop split payments, Daniel Loria, stated that he is confident that a pilot test of the new system will be carried out in 2026. The intention is to move on to an “additional phase” in 2027.
As Loria said, the federal government’s premise is to apply the new system to all payment methods in a uniform manner, thus avoiding distortions in the market.
In addition, it is also considered important to phase in technological development, especially to respect and preserve the qualities of the Brazilian payment system.
It is worth remembering that split payments are part of the operational model of the Tax on Goods and Services (IBS) and the Contribution on Goods and Services (CBS). The model includes, among its main elements:
Loria also explains that split payment can also be considered as “bifurcated payment”, since the three modalities performed for the mechanism are:
Among the benefits brought by the new system are:
It is also important to highlight that split payment will be mandatory in transactions paid by electronic payment methods, whether Pix, Drex, credit or debit card, or boleto.
