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States see possible affront to the Constitution in Lira project, says president of Comsefaz

Representatives of the states saw possible unconstitutionality in the bill that the president of the Chamber, Arthur Lira (PP-AL), intends to put to a vote next week, establishing a ceiling for ICMS on products such as energy and fuel.

“It is necessary to verify if this text is unconstitutional, since the ICMS selectivity is mandatory, which means that essential items must have lower and superfluous taxation, higher rates. As the bill admits the items as essential and provides that the state will be able to set lower rates, it seems, at first, at first analysis, that it violates the principle foreseen in the Federal Constitution of 1988 of the essentiality of the products, since it is not a faculty and yes an obligation of the State”, he told the CNN the president of the National Committee of Secretaries of Finance, Finance, Revenue or Taxation of the States and the Federal District, Comsefaz.

Decio Padilha, who is also Secretary of Finance of Pernambuco, also said that the impact of the PL could reach R$ 100 billion. He recalled, however, that “all this is recent, the project appeared today and Comsefaz needs to study in depth the legality of this project before the constitution and the respective impacts on the states.”

He also stated that any rate change must be preceded by an impact study on the state budget.

“You cannot change the rate without an impact study first. The states have constitutional obligations to fulfill, you cannot lower taxes without observing the activities provided to the population by the states”, he declared.

For him, as it is, the states would not bear the financial impact of the project.

“States will not bear this impact. ICMS is required by the constitution to transfer 25% to municipalities, 12% to health and 25% to education, there are no fiscal conditions to support this change.” Questioned whether there could be judicialization, if the project were approved as it is , he said: “We received today’s project and are studying it”.

Source: CNN Brasil

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