Brazil · Country watch

Selective Tax Set, Manaus Health Crisis

Brazil sets new selective tax rates; Manaus declares health emergency due to severe drought.

Florent Kalfon · 3 November 2026 · 13 articles read

The picture Deteriorating How this is judged →

Business conditions in Brazil are deteriorating due to the new selective tax affecting retailers and a severe health crisis in Manaus impacting public services.

Flare-up watch: Calm (0.8) · Active flag: Heightened vigilance for staff and travel · How this is judged → · All Brazil briefings →

In this briefing Dario Durigan · Ministry of Finance (Brazil) · Government of Amazonas · Manaus · Focus Bulletin · Lula

Regulation

Retail
Public sector

Brazil sets selective tax rates for harmful products

The Brazilian government is set to publish a provisional measure establishing the rates for the new Selective Tax, according to O Globo. Finance Minister Dario Durigan stated the tax, part of the tax reform, targets products harmful to health and the environment. Known as the "sin tax," it will come into effect in February, following the mandatory 90-day period after publication. This tax aims to discourage consumption of these products by increasing their prices.

Impact Retailers of products deemed harmful face increased costs from February due to the new Selective Tax.

Sources: O Globo ↗, Extra ↗, Folha de S.Paulo ↗

Safety & health

Public sector
Pharma

Manaus declares health emergency amid severe drought

The government of Amazonas has declared a 180-day public health emergency due to extreme drought conditions isolating over 600 communities, reports G1. The drought has led to logistical challenges, including the loss of medical supplies and oxygen cylinders in river accidents. Additionally, Manaus is experiencing poor air quality due to smoke from forest fires. The declaration aims to mobilize resources and coordinate efforts to address the health and environmental impacts.

Impact Healthcare providers and public agencies in Manaus face operational challenges and increased demand for resources due to the emergency.

Sources: G1 ↗

Markets

Finance

Economists raise Brazil's inflation and interest forecasts

Economists have increased their forecasts for Brazil's inflation, interest rates, and the dollar through 2029, following Lula's election victory, according to Folha de S.Paulo. The latest Focus Bulletin reflects the anticipated economic impact of Lula's policies, with analysts adjusting their expectations for the country's economic indicators. This shift comes after the previous bulletin was issued before the election's second round.

Impact Financial institutions and investors face adjusted economic forecasts, impacting lending and investment strategies.

Sources: Folha de S.Paulo ↗, Jornal de Brasília ↗

Nothing significant reported today in Disruption · Internal tension · Companies · Trade · Politics.

Also today in the local press

Bayer eleva projeção de lucro para 2026 com melhora no grupo farmacêutico — CNN Brasil
Confiança empresarial cai 0,3 ponto em outubro, a quarta queda seguida, diz FGV — Jornal de Brasília
PEC da Segurança amplia papel federal na área e governo Lula planeja estrutura de novo ministério — Folha de S.Paulo
Eleições nos EUA: democratas têm chance de conquistar maioria dos governos estaduais, o que não acontece há 16 anos — Extra
Ibovespa cai mais de 1% com incerteza fiscal e Copom no radar — CNN Brasil
Empresas seguram novos investimentos à espera da política econômica do Lula 4 — Folha de S.Paulo
É para estocar comida? Entenda orientação de países para dias de crise — A Tarde
BC abre decisão sobre juros em meio à mudança das expectativas do mercado — CNN Brasil

Sources in this briefing

Sources: each headline links to the original article on the publisher's site.

All Brazil briefings →