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STF decision on ICMS will cost states R$31 billion in a year, says president of Comsefaz

The president of the National Committee of Secretaries of Finance (Comsefaz), Décio Padilha, in an interview with CNN , stated that the decision of the Federal Supreme Court (STF) on ICMS will cost states R$ 31 billion in a year. Minister André Mendonça decided that Comsefaz should edit the new rules on the rate charged on fuels.

The tax must be based on the average price of the last five years charged on fuels. “The northeast alone will have a cost of R$ 17 billion”, said Padinha.

“All states are extremely disadvantaged, but the poorest states in the north and northeast have little resources for so much social demand. The impact is overwhelming.”

The president also stated that if mobile media were applied to all fuels, “it will have an impact that will compromise the provision of health and education services”.

ICMS is the tax whose amount collected helps states to pay various demands – 25% of the amount goes to education, while 12% goes to health.

“There wasn’t any kind of time to organize,” Padilha said.

ICMS has been frozen since November last year. And until today, the states have failed to raise R$ 16.1 billion.

Source: CNN Brasil

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