Commission to reconcile states and Union on ICMS starts work this Tuesday

The commission created by the Federal Supreme Court (STF) to seek conciliation between the federal government and states on the ICMS tax rate on fuels will begin work this Tuesday (2).

The first meeting of the group, created by minister Gilmar Mendes, takes place at 2 pm this Tuesday, by videoconference. According to the minister’s decision, the new attempt at conciliation will be mediated by the auxiliary judge Diego Viegas Veras.

The parties have already participated in a commission to seek an agreement under the supervision of Minister André Mendonça. The federal government and the states, however, did not reach a consensus.

In June, Gilmar also tried to hold a conciliation hearing on the case, but there was no decision on the occasion.

The first meeting of this commission takes place at a time when at least four states – São Paulo, Piauí, Maranhão and Alagoas – obtained injunctions motivated by the loss of revenue with the measure.

Last Tuesday (26), Minister Alexandre de Moraes suspended the payment of installments due on Maranhão’s public debt in relation to contracts signed with the Union, Banco do Brasil, Caixa Econômica Federal, the National Development Bank. Economic and Social Development Bank (BNDES), the Inter-American Development Bank (IDB) and the Brazil Loan Trust 1.

The minister used as a justification the drop in state revenue motivated by the new laws passed.

Last Friday (29), the president of the STF, Minister Luiz Fux, suspended the demand for payment of installments for August this year referring to the debts of the State of Alagoas in contracts administered by the National Treasury Secretariat (STN), also based on state revenue declines.

Finally, on Sunday (31), Minister Alexandre de Moraes granted injunctions in favor of São Paulo and Piauí.

The minister allowed São Paulo to effect, as of this month, the immediate compensation of the installments of the debt contract with the Union with the loss in collection.

In addition, Moraes suspended payment of Piauí’s public debt installments in relation to 13 financing contracts with national and foreign institutions.

Source: CNN Brasil

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