Ceiling of 17% on ICMS on the electricity bill generates a loss of R$ 36.5 billion to states, says Comsefaz

If the Complementary Law Project 18 (PLP 18/2022) is approved, which seeks to limit the collection of ICMS (Tax on Commercialization of Goods and Services) to 17% on essential services, the 26 states and the Federal District should lose BRL 36.5 billion per year . The data are a projection of the National Council of Finance Secretariats (Comsefaz).

Consumers, on the other hand, can pay up to 13% less on the electricity bill, according to a survey by CNN based on data from the state departments of finance and electric energy distributors, which mapped the criteria for charging ICMS on the electric service in each state.

The states that will have the biggest reduction for consumers are Minas Gerais (13%), Paraná (12%), Goiás (12%), Maranhão (12%) and Rio de Janeiro (11%).

From January to April 2022, the states of Bahia, Minas Gerais, Paraná, Rio de Janeiro, Rio Grande do Sul, Santa Catarina and São Paulo collected billions from state taxation on electricity. Added together, the resources from taxation reach R$ 17.2 billion.

In the first quarter of 2021, 23 states and the federal district raised R$21.19 billion with ICMS on the electricity bill. In the same period of 2022, the collection was R$ 24.65 billion. Acre, Roraima and Mato Grosso do Sul did not provide data to the report.

States with a single rate, regardless of consumption:

• amapá – 18%
• amazon – 25%
• Bahia – 27%
• Holy Spirit – 25%
• Minas Gerais – 30%
• Mato Grosso – 17%
• Ceará – 27%
• Paraná – 29%
• Paraíba – 27%
• Pernambuco – 25%
• Rio Grande do Sul – 25%
• Tocantins – 25%
• Sergipe – 25%

States with variation in the rate per consumption:

• alagoas : Exempt up to 30 kWh; 17% from 31 kWh to 150 kWh; 27% above 150 kWh
• Goiás : Exempt up to 50 kWh; 25% from 51 kWh to 80 kWh; 29% above 80 kWh
• maranhão : Exempt up to 50 kWh; 18% from 51 kWh to 100 kWh; 20% from 101 kWh to 500 kWh; 29% above 500 kWh
• For : Exempt up to 100 kWh; 15% from 101 kWh to 150 kWh; 25% above 150 Kwh
• Piauí : Exempt up to 50 kWh; 22% from 51 to 200 kWh; 27% above 200 kWh
• Rio de Janeiro : Exempt up to 50 kWh; 18% up to 300 kWh; 27% from 301 to 450 kWh; 28% above 450 kWh
• large northern river : 18% up to 300 kWh; 25% above 300 kWh
• Rondônia : 17% up to 220 kWh; 20% above 220 kWh
• Santa Catarina : 12% up to 150 kWh; 25% above 150 kWh
• Sao Paulo : Exempt up to 90 kWh; 12% from 90 kWh to 200 kWh; 25% above 200 kWh
• Federal District : 12% up to 200 kWh; 18% from 201 kWh to 300 kWh; 21% from 301 kWh to 500 kWh; 25% above 500 kWh