At least 17 states and DF reduce ICMS on electricity

Twenty days after the enactment of the federal law that limits the ICMS on electric energy to 18%, as well as on fuels and telecommunications, a survey of the CNN shows that 17 states and the Federal District reduced the tax.

In addition to the DF, changes were recorded in Acre, Alagoas, Amazonas, Ceará, Espírito Santo, Goiás, Mato Grosso do Sul, Minas Gerais, Pará, Paraíba, Paraná, Rio de Janeiro, Rio Grande do Norte, Rio Grande do Sul, Rondônia, São Paulo and Santa Catarina.

In three other states – Maranhão, Pernambuco and Piauí -, the ICMS decrease depends on the approval of the Legislative Assemblies. In Mato Grosso, the rate was already lower than the ceiling. In relation to Amapá, Bahia, Roraima, Sergipe and Tocantins, the report awaits information.

This Tuesday (12), the Ministry of Mines and Energy published what the potential for reducing electricity bills should be. In addition to the change in ICMS, according to the federal government, the portfolio took into account a contribution that must be made after the capitalization of Eletrobras, with a reduction of 2.5% in the accounts, and a drop of 5.5% due to the PIS and Cofins credits, both federal taxes.

The Ministry of Mines and Energy took into account a house that consumes 162 kWh/month, with an average bill of R$ 150.26. In this case, the average reduction in the country should be 19.5%, with the bill falling to R$ 120.98.

According to the federal government, most states charged ICMS rates between 25% and 30%. Maranhão should register the biggest reduction, of 32.1%. There, the government sent to the Legislative Assembly a project that sets the rate at 18%.

The same happens in Piauí where a project was approved this Tuesday and is going to be sanctioned. The Ministry of Mines and Energy predicts a fall of 28.7% in the state.

In Rio de Janeiro, where the ICMS on energy was set at 18%, the expectation is that the state tax packages, Pis/Cofins credits and contributions from Eletrobras will bring a drop of up to 26.3%.

The states with the lowest percentages of expected reduction in the account are Roraima (-1.9%), Amazonas (-6.35%) and Pernambuco (-7.1%).

In the case of fuels, another sector impacted by the law that limits ICMS, all states have already made changes in rates. In relation to gasoline, after the change, the average price of a liter in the country fell from R$ 7.13 to R$ 6.49.

Despite the adjustments made by the governors to comply with federal law, 11 states filed a lawsuit in the Federal Supreme Court questioning the project. According to the governors, the law in question “seriously harmed the federative pact and the principle of the autonomy of subnational entities”.

The National Committee of Secretaries of Finance (Comsefaz) estimates a loss of R$ 100 billion in 12 months with the limitation of the tax, the main source of revenue for the states.

States and DF with ICMS tax rate reduction for electricity

• Acre: dropped 25% to 17%
• Alagoas: 17% rate
• Amazonas: 18% rate
• Ceará: 18% rate
• DF: 18% rate
• Espírito Santo: 17% rate
• Goiás: went from 29% to 17%
• Mato Grosso do Sul: went from 25% to 17%
• Minas Gerais: went from 30% to 18%
• Pará: decreased from 25% to 17%
• Paraíba: dropped to 18%
• Paraná: dropped from 29% to 18%
• Rio de Janeiro: 18% rate
• Rio Grande do Norte: 18% rate
• Rio Grande do Sul: 17% rate
• Rondônia: 17.5% rate
• São Paulo: 18% rate
• Santa Catarina: 17% rate

We were unable to obtain information about Sergipe, Tocantins, Amapá, Bahia and Roraima .

States with bill under review

maranhão : forwarded a bill to the Assembly with a rate of 18%
Pernambuco : project under analysis by the deputies, with a rate of 18%
Piauí : project that provides for ICMS of 18% was approved this Tuesday (12) and is going to be sanctioned by the government.

specific case

Mato Grosso : already had a tax on energy inside the ceiling