After agreement, project that limits ICMS on energy should be voted on this Wednesday

To reduce the resistance of governors, leaders from the base reached an agreement to include in the project that seeks to limit the ICMS (state tax) on energy and fuels a trigger that forces the Union to compensate states in the event of a loss of revenue greater than 5%, with a six-month transition.

The project would be voted on this Tuesday (24) in the Chamber of Deputies. The economic team resisted accepting compensation from the governors, but eventually relented. With this, the rapporteur Elmar Nascimento (União Brasil-BA) must file an opinion on the project for the vote to take place this Wednesday (25).

The complementary bill, by deputy Danilo Forte (União Brasil-CE), limits the taxation of ICMS on energy, telecommunications, collective transport and fuels to 17%. The text seeks to give legal basis to an understanding reached by the STF (Supreme Federal Court) in November 2021.

The Court considered that essential goods and services – such as energy and telecommunications – cannot be taxed more than operations in general, which have rates between 17% and 18% in the states.

The possibility of loss of revenue, however, generated a reaction from governors. To lessen resistance, grassroots leaders decided to include compensation in case the revenue decrease exceeds 5%. This money would then be replaced by the Union, with a six-month transition.

The text is one of Lira’s bets to try to reduce the energy tariff in the country. According to Danilo Forte, if approved, the project could reduce the electricity bill by up to 11%.

Strong advocated a simplification of the text, removing transport and telecommunications to facilitate approval. This Tuesday, however, he stated that even the opposition supports the inclusion of these sectors in the text and that, therefore, it would not be necessary to remove the items.

This Tuesday, in a press conference, Forte stated that, at the meeting, the Minister of Mines and Energy, Adolfo Sachsida, presented proposals to try to make energy cheaper in the country. According to him, one of the alternatives studied is the transfer of resources from the CDE (Energy Development Account) of Eletrobras, as well as the judicialization of PIS and Cofins on charges and subsidies.

At the meeting, according to the deputy, Sachsida indicated that the measures could lead to a final reduction of around 14% in energy.

Lira and Minister Paulo Guedes (Economy) make a joint effort to try to reduce the resistance of Senate President Rodrigo Pacheco (PSD-MG) to the text.

Guedes’ team argues that the governors have full boxes and that it is necessary to return this revenue directly to the population instead of departing for solutions seen as ineffective – such as the creation of subsidies. Therefore, cutting taxes is considered the most appropriate act.

Guedes defended the plan in conversation with Pacheco. The two met on Friday (20) and, after hearing the arguments, the Senate president replied that he would analyze the issue.

Pacheco had already had a previous meeting with Lira about the project. Although he did not manifest himself to the contrary, the senator said that the studies would be in-depth and that there would be dialogue with leaders of the House to evaluate the proposal.

There is a possibility of greater resistance in the Senate because of the proximity of the House to the states.

The CMN (National Confederation of Municipalities) calculates a loss of R$ 65.6 billion for the public coffers — and, for mayors (who receive part of the governors’ collection with ICMS), the annual loss would be R$ 15, 4 billion.

Lira has been on an offensive to try to reduce the price of energy. On the 3rd, the deputies approved the urgency of a draft legislative decree (PDL) that stops the readjustments in Ceará. With this, the text can be voted on in plenary.

The project is used as a way of putting pressure on the country’s distributors to review the increase in tariffs, as there is an articulation so that the replacement of the text includes not only Ceará, whose tariff was readjusted by 24%, but other states that also had an increase .

The project’s vote is viewed with reservations within the government, especially due to the legal uncertainty that the breach of contracts would represent.