The IBS Management Committee (CGIBS): the new body that runs the IBS

The IBS Management Committee (CGIBS) is the new federative body created to run the IBS — the tax of the States, the Federal District and the Municipalities. While the CBS stays with the Federal Revenue, on the Union’s side, the IBS is administered jointly by all subnational entities through the CGIBS. It is the institutional heart of Brazil’s tax reform, set out in art. 156-B of the Constitution and regulated by Complementary Law 227/2026.

Below, the TaxUp team explains who runs what, the CGIBS’s powers, how it is composed and decides, how it is financed and where its setup stands — plus what it means for business. It is the body behind the whole tax reform, including the cashback mechanism it co-administers.

Two taxes, two administrators

The reform creates two taxes with a mirrored base — but two administrators. The IBS belongs to the States, the FD and the Municipalities and is run by the CGIBS. The CBS belongs to the Union and is run by the Federal Revenue (RFB).

They are not isolated: the CGIBS, the Federal Revenue and the PGFN share tax information and harmonise rules, obligations and procedures (art. 156-B, §§ 6 to 8, of the Constitution) — so the taxpayer sees one coherent system, not two.

Before: from CONFAZ to the CGIBS

Coordinating the ICMS used to depend on CONFAZ (Complementary Law 24/1975): benefits required unanimity among the States, and any incentive without an agreement bred the “tax war” that ended up at the Supreme Court. The CGIBS changes the model: instead of merely authorising benefits by unanimity, it administers the whole tax, with a single set of regulations valid across the country and decisions by a qualified majority.

Legal basis

The CGIBS is created by the Constitution and regulated by complementary law:

An important nuance: the body that runs the IBS (the CGIBS) is detailed in LC 227/2026, while the IBS and CBS rules — base, rates, regimes — are in LC 214/2025. Two complementary laws, two functions.

Powers (art. 156-B)

The Constitution gives the CGIBS three core powers:

One point that escapes many: auditing, assessment and collection remain with the state and municipal tax authorities (art. 156-B, § 2, V). The CGIBS unifies the rules and the litigation, not the local enforcement.

Composition: 54 members in parity

The CGIBS’s Superior Council has 54 members, in parity between the two federative blocs (art. 156-B, § 3): 27 representatives of the States and the FD (one per entity), and 27 of the Municipalities and the FD — of whom 14 by equal vote and 13 by a vote weighted by population.

Parity is the key: the same weight for States and Municipalities, with the chair alternating between the two blocs (art. 156-B, § 2, II). No single entity — not even São Paulo — controls the body.

Decisions: the qualified majority

To approve a decision, the CGIBS requires three things at the same time (art. 156-B, § 4): an absolute majority of the representatives of the States and the FD; representatives corresponding to more than 50% of the country’s population; and an absolute majority of the representatives of the Municipalities and the FD.

It is a deliberate design: it balances the number of entities and the population, and replaces the old CONFAZ unanimity — which made any change hostage to a single state — with a qualified majority that can actually decide.

Financing: the cap on collection

The CGIBS is financed by a slice of the IBS collection — but with a cap that falls over time (LC 227/2026, arts. 47 and 51). The setup, until 2028, is funded by the Union with later reimbursement (EC 132, art. 14). The cap starts high while the IBS base is tiny and converges to a permanent 0.2%.

The logic: in 2026–2028 the IBS base is negligible, so a high percentage is a small amount; as the IBS grows in the transition, the cap drops to the permanent limit of 0.2% (art. 47, I).

Setup: where the CGIBS stands

The CGIBS is being built. A provisional presidency was elected in August 2025; the Superior Council held its first meeting on 3 March 2026 in Brasília; and the provisional mandate runs until 31 March 2027, when the formal election takes place. The body gains real weight as the IBS grows in collection from 2029.

Points usually missed

The litigation is unified for the IBS, but separate from the CBS

The CGIBS decides the IBS administrative litigation — unified across all 27 states, instead of 27 scattered systems. But it is not a single litigation for both taxes: CBS disputes still run through the Federal Revenue and its administrative court. There are coordination mechanisms, but two tracks.

Enforcement stays local

The CGIBS does not audit or collect on the ground. Auditing, assessment and collection remain with the state and municipal tax authorities (art. 156-B, § 2, V) — what is unified is the regulation and the IBS litigation.

Two complementary laws

The CGIBS is regulated by LC 227/2026; the IBS and CBS themselves by LC 214/2025. Confusing the two leads to looking for the body’s rules in the wrong law.

National integration, not a super-tax-authority

The CGIBS harmonises and integrates, but it does not absorb the powers of the RFB or the local authorities. It is a federative coordination body, not a new centralised tax authority.

What it means for businesses

For companies, the CGIBS is good news in one decisive respect: a single set of regulations for the IBS, valid nationwide, replaces the patchwork of 27 state rules. The same operation will no longer be read differently in each state — which cuts compliance cost and the risk of conflicting assessments.

The flip side is knowing the new map: IBS disputes go to the CGIBS’s administrative litigation; CBS disputes to the Federal Revenue. Following the CGIBS’s regulations and decisions becomes part of the tax-planning routine — as central as the rates themselves. In the TaxUp team’s view, the CGIBS is the institution that will, in practice, define how the reform is applied day to day, across the transition and beyond.

Common mistakes and risks

• Thinking the CGIBS runs the CBS too. The CBS stays with the Federal Revenue; the CGIBS runs the IBS (art. 156-B).
• Assuming one unified litigation for both taxes. The IBS litigation is unified at the CGIBS; the CBS runs separately.
• Believing local tax authorities disappear. Auditing and collection stay with the states and municipalities (art. 156-B, § 2, V).
• Looking for the CGIBS’s rules in LC 214. The body is regulated by LC 227/2026.
• Picturing CONFAZ-style unanimity. The CGIBS decides by a dual qualified majority (art. 156-B, § 4).

Frequently asked questions

Sources: Federal Constitution, art. 156-B (introduced by Constitutional Amendment 132/2023); Complementary Law 227/2026 (CGIBS organisation; financing in arts. 47 and 51); Complementary Law 214/2025 (IBS and CBS); CONFAZ — Complementary Law 24/1975 (historical section). Setup dates per the CGIBS’s public schedule. Informational content; not a legal opinion.