In an interview with CNN This Thursday (26), Duarte Nogueira, secretary general of the National Front of Mayors (FNP), said that ICMS is the main source of revenue for municipalities, and that the decrease in the collection of this tax will affect public policies.
“If there is a loss of revenue, of course there will be an impact on public policies, there will be a reduction in transfers for the issue of education, health, social assistance”, said Nogueira.
The Chamber of Deputies approved on Wednesday (25) a bill (PL) that limits the collection of ICMS on goods and services that are now considered essential to 17%. This includes, for example, fuel and electricity. The text generated criticism from states and municipalities, who argue that revenue will be strongly affected. The matter will be analyzed by the Senate.
Duarte estimated that the loss of revenue for the municipalities in “two and a half years” could reach R$ 53 billion. In 2022, the impact would be R$11 billion less.
The mayor of Ribeirão Preto also said that the FNP will try to “improve, together with the Senate” the text approved by the Chamber, “so that the losses are as small as possible for the municipalities”.
“If you have an expense already fixed for 2022 and there is frustration in revenue, this resource already fixed for certain tasks in education, health, social assistance, among others, is no longer included in the estimate and can compromise the budget until the end of 2022 of the cities in Brazil.
Watch the full interview in the video above
*under the supervision of Elis Franco, from CNN
Source: CNN Brasil
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