The selective tax as an instrument of environmental sustainability

Abstract

The purpose of this article is to analyze the Selective Tax, provided for in the Brazilian Tax Reform, as an instrument of environmental sustainability and of promoting responsible behavior toward the environment. The research is guided by the question: in what ways can the Selective Tax proposed in the Brazilian Tax Reform be used as an instrument of environmental sustainability in the taxation of products harmful to the environment, in light of the polluter-pays principle and the extrafiscal function of taxation? This is a qualitative, theoretical, and bibliographical study with a deductive approach, based on the analysis of the Federal Constitution, Constitutional Amendment No. 132/2023, related legislation, and doctrinal works in tax and environmental law. The results indicate that the Selective Tax is predominantly extrafiscal in nature, allowing the State to use taxation as a tool for environmental regulation, internalizing the ecological costs of economic activities and promoting sustainability. It was also found that its effectiveness will depend on how it is regulated by supplementary law. The study concludes that the Selective Tax represents progress within the Brazilian legal framework, as it reaffirms the role of taxation as a tool for environmental protection and the promotion of sustainable development, provided that its application retains its incentive-based character and does not become merely a revenue-raising mechanism.