AGU speaks out against proposal from state secretaries on ICMS rate

The Attorney General’s Office (AGU) sent to the Federal Supreme Court (STF), this Tuesday (14), a statement against the proposal made by the National Committee of State Secretaries of Finance (Comsefaz) to resolve the impasse involving the collection of ICMS on fuels.

According to the AGU, the Ministry of Economy spoke out against the proposal, arguing that the federal government made a fiscal effort during the fight against the pandemic, as well as providing new rules that led to an improvement in the public accounts of the states.

“The proposal for full compensation by the Union should not be accepted because it disregards all the effort adopted by the federal government over the last few years to face the Covid pandemic, as well as the structural legislative measures that were approved by the National Congress with the aim of deepen fiscal consolidation in federal entities,” said the ministry.

For the Economy, “the improvement of the fiscal situation of the States allows the adoption of measures by those federated entities to face the current situation, in particular the recognition of the principle of essentiality defined in the Complementary Law Project under discussion in the National Congress”.

The AGU also said that the Special Secretariat for Productivity and Competitiveness highlighted that “it is concluded that the conciliation proposal presented by Comsefaz, even considering all the efforts made by d. representatives and the negotiation efforts on the part of the federal states, departs far from the guidelines established by the Federal Constitution, seeking the perpetuity of measures that are manifestly unconstitutional and that significantly contribute to the aggravation of prices”.

On Monday (13), Minister André Mendonça, of the Federal Supreme Court (STF), gave a deadline for the government and Congress to express their views on the states’ proposal for the calculation of ICMS (Tax on Circulation of Goods and Services).

The minister stated, in the decision, that, after the deadline, “with or without manifestation” of the Executive and Legislative, he will examine eventual approval in agreement with the entities of the Federation.

The minister spoke after the states presented to the Supreme a proposal on the calculation of the tax levied on fuel, collective transport, electricity and telecommunications.

Source: CNN Brasil

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