Entities propose to the government an adjustment in the ICMS modal rate to replace decrees

In a meeting held this Wednesday afternoon (27/3), at Palácio Piratini, a group of 24 entities proposed to Governor Eduardo Leite that the State resume the discussion of adjusting the modal rate of the Tax on Circulation of Goods and Services (ICMS ). If approved, the measure, proposed by the Rio Grande do Sul government last year, would replace the decrees reviewing tax benefits issued at the end of 2023 and which come into force from April 1st. The governor promised a quick analysis of the suggestion from business entities.

“We will hold a meeting with the team to evaluate the technical and political conditions and the alternatives presented. The important thing is that there is an honest and sincere debate on the subject”, said Leite. “The government does not want to raise money to have more money, but because it needs revenue to serve the population with essential services, such as health, education and public safety.”

The spokesperson for the delivery of the document was the president of Cotrijal and Expodireto Cotrijal, Nei Manica. “The decrees have more impact on the productive sectors, and that is why we defend the basic rate of 19% [atualmente é de 17%]because we also know the State’s challenges in maintaining fiscal balance and continuing to invest in strategic areas for development”, he explained.

If approved by the Legislative Assembly, the change in the rate would be valid from 2025. During the meeting, which was attended by deputies from the allied base and secretaries of State, Leite announced changes to the tax benefit decrees. The validity of the decree that stipulates the limitation of the so-called Fruition Adjustment Factor (FAF) will be changed, and the reduction in the percentage of incentives for agricultural pesticides will be changed from 40% to 30%.

Entities that support adjustments to the ICMS modal rate

• Association of Cereal Companies of Rio Grande do Sul (Acergs)
• Association of Entities Representative of the Business Class of Serra Gaúcha (Cics Serra)
• Association of Small and Medium Dairy Industries of Rio Grande do Sul (Apil)
• Association of Pig Breeders of Rio Grande do Sul (ACSURS)
• Association of Horticultural Producers of Ceasa/RS (Assphcergs)
• Ceasa/RS Users Association (Assucergs)
• Gaucha Poultry Association (Asgav)
• Gaucho Supermarket Association (Agas)
• Gaúcha Association of Crushed, Sand and Clay Producers (Agabritas)
• Gaúcha Association of Apple Producers (Agapomi)
• National Association of Distributors of Pesticides and Veterinary Products (Andav)
• Rio-Grandense Intermunicipal Transport Association (RTI)
• Federation of Agricultural Cooperatives of the State of Rio Grande do Sul (FecoAgro/RS)
• Federation of Road Transport Companies of the State of Rio Grande do Sul (Fetergs)
• Federation of Agricultural Workers in Rio Grande do Sul (Fetag-RS)
• Animal Health Defense and Development Fund (Fundesa)
• Ocergs Cooperative Organization
• Union of the Road Construction, Paving and Earthworks Industry in General in Rio Grande do Sul (Sicepot-RS)
• Union of the Crushed, Sand and Clay Mining Industry of the State of RS (Sindibritas)
• Union of the Biodiesel and Biofuels Industry of Rio Grande do Sul (Sindbio-RS)
• Union of the Meat and Meat Products Industry in the State of Rio Grande do Sul (Sicadergs)
• Union of the Dairy and Derived Products Industry (Sindilat)
• Wheat Industry Union in the State of Rio Grande do Sul (Sinditrigo-RS)
• Union of Pork Products Industries of the State of Rio Grande do Sul (Sips)

_{Text: Juliano Rodrigues/Secom
Editing: Felipe Borges/Secom}