Panel SA: STF agreement provides for the end of the fuel ICMS ceiling

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After months of impasse, representatives of the states and the Union reached a consensus on the terms of an agreement to resolve the crisis generated by the change in the collection of ICMS on fuel and essential services.

Eleven states appealed to the STF (Federal Supreme Court) questioning the constitutionality of the law that reduced and unified the tax rates by 17%. Before it was defined by the states.

A special commission was created by Minister Gilmar Mendes to try to find a solution before the case went to the plenary.

Mendes is the rapporteur for two of the most important ADIs (Direct Actions of Unconstitutionality).

According to reports, unanimously, the technicians involved in the discussions voted in favor of the proposal at the meeting that took place on Friday (2).

Now, the terms of the agreement will be appreciated by the governors, by the Minister of Economy, Paulo Guedes, and by President Jair Bolsonaro.

If one of them vetoes, the pact loses its validity. They are expected to make suggestions within the text approved by the technicians. If there is consensus, it will be submitted for ratification by the plenary of the STF.

The agreement provides that, if there is consensus, until December 31 of this year, an agreement is made between states and the Federal District so that the collection of ICMS is uniform and single-phase on fuels.

The settlement, however, does not apply to gasoline – which will be subject to a separate negotiation.

The definition of the rate charged on diesel, natural gas and LPG will once again be the responsibility of federal entities, through Confaz (National Council for Finance Policy).

The agreement also overturns provisions of the new law that provides for a period of at least one year for the rate to be readjusted after it has been defined for the first time.

The lock that prevents the tax from weighing too heavily on the price of fuel to the consumer was also removed.

These changes will occur through complementary bills (PLP) to be forwarded to Congress after ratification of the agreement by the Supreme Court.

Julio Wiziack (interim) with Paulo Ricardo Martins and Diego Felix

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