Fux allows return of ICMS collection on electricity tariffs

Minister Luiz Fux, of the Federal Supreme Court, suspended, this Friday (10), an excerpt of the law that changed the collection of ICMS (Tax on Circulation of Goods and Services) on electricity. In practice, Fux’s decision, which will still be analyzed by the other ministers of the STF, allows states to once again charge tariffs corresponding to transmission and distribution costs.

These tariffs are called Tust and Tusd, respectively, and the change imposed in the law approved by Congress and sanctioned by former President Jair Bolsonaro would represent a drop in revenue for the states. The calculation is that the reduction would be around R$ 16 billion per semester.

“The estimate is that, every six months, the States fail to collect approximately R$ 16 billion, which may also have an impact on the collection of municipalities, since the Federal Constitution determines that 25% of the revenue collected with ICMS by the states must be passed on to the municipalities”, said the minister in his decision.

According to Fux, the Union, through the law enacted last year, may “have exorbited its constitutional power, interfering in the way in which the States exercise their tax competence in relation to ICMS”.

The minister’s decision will be analyzed by the other ministers of the STF from February 24 to March 3 through the Court’s virtual plenary (a judgment modality in which there is no individual reading of each vote, only the registration of votes in the Court’s system ).

Source: CNN Brasil

You may also like