Business entities from Rio Grande do Sul protest against the increase in ICMS in Porto Alegre

Business entities from Rio Grande do Sul protest against the increase in ICMS in Porto Alegre
Business entities from Rio Grande do Sul protest against the increase in ICMS in Porto Alegre
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Per

Radio Pampa Editorial

| April 1, 2024

Representatives of federations and businesspeople from different areas of the productive sector in Rio Grande do Sul gathered in front of Palácio Piratini, in Porto Alegre, on the afternoon of this Monday (1st) to protest against the cut in tax benefits and the increase in Tax on Circulation of Goods and Services (ICMS) in the State.

The event organized by the Federation of Business Entities of Rio Grande Sul (Federasul) draws attention to the fact that the increase in ICMS may reflect, among other effects, an increase in the price of food, including the basic food basket.

According to the entity, “the increase in taxes takes away income from indebted Rio Grande do Sul families, making jobs and economic sectors unviable, causing Rio Grande do Sul to continue losing young people and talents who leave in search of opportunities”.

Scheduled to come into effect this Monday, state decrees providing for cuts in tax benefits for various sectors of the economy were postponed by the Rio Grande do Sul government for a month. The new deadline is motivated by the request of 26 entities representing the business sector to resume the discussion on the general ICMS rate.

The proposed changes cover the basic food basket, with the end of the ICMS exemption or differentiated rate for 21 items, now applying a single rate of 12%. If approved by the Legislative Assembly, this change will take effect from next year.

It also foresees the gradual withdrawal of 40% of tax incentives from 64 productive sectors, through semi-annual cuts of 10%, starting this year. Another topic is the change in the Fruition Adjustment Factor (FAF) rules, which will now condition 100% of presumed credit on purchases made by companies within Rio Grande do Sul.

The article is in Portuguese

Brazil

Tags: Business entities Rio Grande Sul protest increase ICMS Porto Alegre

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