Brazil’s ambitious tax reform hit a snag for investors tracking consumption as the committee overseeing the new system estimated the combined value-added tax rate, known as the Dual-IVA, at 27.91%, potentially making it the highest in the world. The Comitê Gestor do Imposto sobre Bens e Serviços (CGIBS) published a resolution outlining the preliminary rate—comprising an estimated 18.70% for the state/municipal Imposto sobre Bens e Serviços (IBS) and 9.21% for the federal Contribuição sobre Bens e Serviços (CBS)—which is intended for projection purposes for the new system’s full implementation in 2033. Crucially, the 27.91% estimate exceeds the 26.5% soft cap established in the initial legislation, which itself was already an elevated forecast, signaling higher effective costs for consumers and businesses alike.