Minister Cristiano Zanin of Brazil’s Supreme Federal Court (STF) has voted to maintain the suspension of the Beverage Production Control System (SICOBE), confirming his earlier decision that halted its reinstatement in April 2025. The virtual plenary session began on October 17 and will conclude on October 24, allowing other justices to submit their votes electronically.
Created to monitor the production of beers, soft drinks, and bottled water in real time, SICOBE was designed to prevent tax evasion and track beverage authenticity. Managed by the Federal Revenue Service and operated by a private company, the system was discontinued in 2016 due to high costs, technical flaws, and limited efficiency. However, the Federal Audit Court (TCU) later ordered its reactivation, deeming the Revenue’s decision illegal.
In his opinion, Zanin argued that reinstating the system would cost the federal government around BRL 1.8 billion (USD 315 million) annually and create unauthorized tax benefits not accounted for in the 2025 federal budget, potentially breaching the Fiscal Responsibility Law. He also emphasized that the Federal Revenue Service had acted within its legal authority to suspend the system, while the TCU lacked jurisdiction to overturn that decision.
The government, represented by the Attorney General’s Office (AGU), supported the suspension, stating that the Revenue has full autonomy to introduce, modify, or discontinue monitoring obligations. The ongoing case is limited to tax and fiscal issues and does not cover product safety or methanol contamination in distilled beverages, which are regulated separately through tax seals and not related to SICOBE.
If reinstated, the system could improve tax collection and traceability in the beverage industry, but for now, its future remains uncertain as other STF ministers deliberate their votes in the coming days.
