Tax reform: what changes for the cannabis sector
A lawyer explains how the tax reform affects cannabis companies, compounding pharmacies, and imports via RDC 660. Understand what changes.
The medicinal cannabis sector is closely following the developments of the tax reform on consumption in Brazil. While the market is seeking room to grow, new tax rules bring changes that will directly impact the costs of companies, compounding pharmacies, and patients starting in 2027.
Provided for in Constitutional Amendment No. 132/23 and Supplementary Laws Nos. 214/25 and 227/26, the reform replaces five current taxes (ICMS, ISS, PIS, COFINS, and IPI) with two main ones: the Contribution on Goods and Services (CBS), under federal jurisdiction, and the Tax on Goods and Services (IBS), shared between States and Municipalities. To simplify the system, both taxes will share the same triggering event and will be assessed jointly on the same transactions.
“Given this gap, the most conservative interpretation is that such transactions will be taxed by the IBS/CBS, directly increasing import costs as early as January 1, 2027.”
Speaking to Portal Sechat, tax attorney Allan Moraes detailed how this transition will work in practice. In addition to the dual VAT (IBS and CBS), the expert points out that the new model foresees an additional levy for specific sectors:
“There will also be the collection of the Selective Tax – IS on goods and activities harmful to health or the environment, which is why it is nicknamed the 'sin tax'.”
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Collection of new taxes begins in 2027
The transition period began in 2026, but for now it only requires compliance with ancillary obligations by companies, without the actual collection of new taxes. The financial change truly begins on January 1, 2027, when PIS and COFINS will be phased out to make way for the collection of CBS and the Selective Tax.
IBS, on the other hand, will begin to be collected in 2029, gradually replacing ICMS and ISS until 2032. The new system will only be fully implemented in 2033, with the definitive end of ICMS and ISS.
“The rates of the new taxes have not yet been defined by law, but the projection is that the standard combined rate of IBS/CBS will be 28%, of which approximately 1/3 will correspond to the CBS rate (approximately 9.3%),” Moraes explains.
For companies operating in the cannabis market, calculating the extent of this impact right at the first turn of the calendar depends on the structure of each operation:
“The main change in January 2027, therefore, is the elimination of PIS and COFINS and their replacement by CBS, which will be levied at an estimated rate of 9.3%. The impact of this change on the tax burden of companies or products is not trivial to assess due to the numerous variables involved. The nature of the activity (manufacturing, provision of services, commerce, etc.), the tax regime currently adopted by the company (Actual Profit vs. Presumed Profit vs. Simples), full non-cumulative system, special regimes—all of this influences the assessment of the measures’ impact.”
At the state level, the weight of the change will take effect in the second stage of the transition. “In addition to all this, regarding ICMS, the impacts will only begin in 2029 and will depend on the rates and treatment currently granted by each state to the cannabis sector,” the attorney adds.
Products without medication registration will face higher tax burden
A determining factor in defining how much tax each product will pay is its regulatory status with the National Health Surveillance Agency (Anvisa). The new legislation distinguishes items registered as medications from those holding only sanitary authorization (as currently occurs under RDC 327).
“It must be borne in mind that medications registered with Anvisa or produced by compounding pharmacies will be subject to a differentiated regime, which provides for a 60% reduction in IBS and CBS rates, which should considerably reduce the impact of the measures on this segment,” Moraes points out.
Cannabis-based products operating solely under sanitary authorization, on the other hand, are excluded from this tax benefit:
“As previously stated, the 60% reduction only applies to medications registered with Anvisa or produced by compounding pharmacies. Outside these scenarios, the general rule will be the application of the ‘full’ rate and, therefore, a higher tax burden.”
Compounding pharmacies maintain 60% reduction
During the approval of the reform text, the absence of specific mention of cannabis among the beneficiary inputs raised questions in the market regarding how compounding pharmacies would be affected. Moraes clarifies that the discount applies to the entire compounding segment, regardless of the raw material:
“Medications produced by compounding pharmacies are subject, without exception, to a 60% rate reduction, including cannabis-based medications.”
Lack of NCM code does not prevent discount on final product
Another recurring debate among importers of raw materials and biomass is the lack of a specific NCM (Mercosur Common Nomenclature) code for cannabis with the Federal Revenue Service. According to the lawyer, the absence of the code affects statistical and regulatory control, but the non-cumulative system corrects the levy at the end point when the product is entitled to the discount:
“The creation of a specific NCM code does not directly affect taxation, but it can bring numerous benefits for market assessment and regulatory control purposes. Without specific treatment provided for inputs in legislation, imports will be carried out under ordinary taxation. If the final manufactured product benefits, however, the rate reduction combined with the non-cumulative system will eliminate this difference in treatment, allowing the benefit to reach the end consumer.”
Legal loophole could make patient imports more expensive
While the industrial supply chain can offset tax credits throughout the process, the situation is much more delicate for individuals importing cannabis-based products under Anvisa's RDC No. 660. Because the patient is the end consumer and does not generate tax credits, any tax collected upon product entry directly impacts the treatment's price.
“Imports of medications under the Simplified Taxation Regime - RTS carried out directly by patients, under the terms of Anvisa's RDC No. 660, are currently not taxed (zero rate),” the tax lawyer reminds.
The alert for patients and associations is that the new law did not expressly guarantee the continuation of this zero rate for the new taxes taking effect next year:
“There is no express provision in the legislation, however, stating that the new taxes (CBS and IBS) would be included in the RTS. Given this gap, the most conservative interpretation is that such operations will be taxed by IBS/CBS, with a direct increase in import costs as early as January 1, 2027 (approximately 9.3% in 2027/2028 and gradually increasing from 2029 until reaching the full rate in 2033, projected at 28%).”
Understand everything about the tax reform
1. When do the new tax reform taxes take effect for cannabis companies?
The transition began in 2026, but focuses solely on compliance with ancillary obligations, without actual tax collection. The financial impact begins on January 1, 2027, when PIS and COFINS will be phased out and replaced by the Contribution on Goods and Services (CBS), with an estimated rate of 9.3%. The Tax on Goods and Services (IBS) will be introduced gradually starting in 2029, replacing ICMS and ISS until 2033, when the new dual system (IBS/CBS) will be fully implemented with a projected standard rate of 28%.
2. Will cannabis products with sanitary authorization receive tax discounts?
Not necessarily. The new legislation guarantees a 60% reduction in IBS and CBS rates only for products holding definitive medication registration with Anvisa or produced by compounding pharmacies. Products operating solely under sanitary authorization (such as the standard model of RDC 327) are excluded from the benefit and will be taxed at the full rate.
3. Does the tax reform harm compounding pharmacies working with cannabis?
Not regarding rate reduction. Although there was industry concern due to the absence of specific mention of the plant in the list of beneficiary inputs, the expert clarifies that medications produced by compounding pharmacies are subject, without exception, to a 60% reduction in IBS and CBS rates, including cannabis-based formulations.
4. Does the lack of a specific NCM code affect biomass and input imports?
The absence of a specific NCM (Mercosur Common Nomenclature) code for cannabis hinders regulatory and statistical control by the Federal Revenue Service. However, according to the lawyer, this does not directly alter initial taxation—input imports undergo ordinary taxation. Nonetheless, if the final manufactured product is entitled to the tax benefit, the non-cumulative credit system eliminates this difference, and the discount reaches the end consumer.
5. What changes for patients importing cannabis via RDC 660?
There is a real risk of cost increases. Currently, imports made directly by patients via Anvisa's RDC No. 660 benefit from a zero tax rate under the Simplified Taxation Regime (RTS). Because the new legislation left a gap and did not expressly guarantee the inclusion of these new taxes (CBS and IBS) in the RTS, the most conservative interpretation indicates that these imports will be taxed. The increase in treatment costs could start at around 9.3% in 2027/2028, rising gradually until reaching the full rate of 28% in 2033.
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Sandro Nogueira, CEO of Memphis Logistics, warns that the potential removal of tax benefits could increase the cost of imported cannabis and hinder patient access to treatment.