Running out of time to recover losses caused by the reduction of ICMS on fuel, nine states are trying to increase the tax on other items so that the new rates are in effect at the beginning of next year.
A survey by Patri, a public and government relations entity, shows that Alagoas, Amazonas, Goiás, Minas Gerais, Pará, Piauí, Paraná, Rio de Janeiro and Sergipe are already part of this group. All followed a study by Comsefaz (National Committee of State Treasury Secretaries) to increase standard rates – called modal in tax jargon.
The guideline is to increase the ICMS within the range of 17.5% to 21.5%. This maneuver will make it possible to recover around BRL 33.5 billion in revenue.
The Legislative Assemblies of Goiás, Paraná, Pará and Sergipe have already approved the increases in ICMS and are awaiting the sanction of the governors.
According to Patri, some states will take advantage of the change in the modal rate and boost the increase in taxes on other products, such as alcoholic beverages, water, cell phones, cosmetics and perfumes. This is the case of Amazonas, Alagoas, Minas Gerais and Paraná.
Technically, this will be the last week for the approval of the projects before the recess and the deputies must set up a task force to analyze the proposals and close the legislative year.
Under the agreement under negotiation at the STF on ICMS rates, this practice will not be possible. According to the assessment of finance secretaries, if the governors, the Ministry of Economy and Congress accept the terms of the draft, no state will be able to increase the modal tariff to compensate for the reduction in the tax on essential services.
The expectation, as Panel SA reported, is that it will be closed by the end of this year. If states, government and Congress do not reach an agreement, the matter will be decided by the plenary of the STF.
Minister Gilmar Mendes, rapporteur for the most important actions on the subject, created a special commission to try to reach consensus. The draft agreement came out of that group.
Julio Wiziack (interim) with Paulo Ricardo Martins and Diego Felix
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