In a meeting with entrepreneurs, the government agreed to discuss increasing the ICMS rate to 19%
Governor Eduardo Leite has decided to postpone the decrees that cut tax benefits for thirty days, to the decrees that would come into force next Monday, April 1st.
Announcing the postponement, the governor reports that the government has agreed to discuss the proposal presented last Wednesday (27th) by a group of entrepreneurs who intended to increase the ICMS basic rate from 17% to 19%. He will then use the next few weeks to develop the proposed state tax increase by talking to allies and testing the political feasibility of the initiative in the Assembly.
The government’s first plan was to increase the overall ICMS rate. Since there was no progress, Leite opted for “plan B”, cutting tax incentives.
If Eduardo Leite decides to follow the first plan, the government will have to send a new bill to the Legislative Assembly, which will have to be approved by the majority of deputies. If approved, the government would permanently suspend the benefits review.
If the deputies approve the increase in the ICMS rate, the new percentage can only be applied starting from 2025, based on the principle of annuality.
Source: Terra
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