ICMS
Government increases taxes and food and drink prices will rise in Bahia
The increase will affect consumers, restaurants, delicatessens, bakeries, pizzerias and grocery stores
Published on April 1, 2024 at 9:30 pm
Sliced and cold cuts are among the products with increased tax Credit: Paula Fróes/CORREIO
The state government increased the ICMS (Tax on Circulation of Goods and Services) from 4% to 20.5% on grocery, dairy, frozen, cold cuts and sliced products, and increased taxation on alcoholic beverages, except beers, to 27%.
The impact of this increase will be felt by consumers in restaurants, delicatessens, bakeries, pizzerias and grocery stores. In a statement, the State Finance Department (Sefaz) reported that it had withdrawn the tax exemption to preserve legal competition in the market as large delicatessens had an advantage over others.
“The change removed the possibility of reducing the tax burden for products such as wines, whiskeys, cheeses, cold cuts and sliced meats and other items, especially imported food, sold by these establishments. The State Treasury also emphasizes that the effects of the adjustment promoted do not apply to micro and small taxpayers”, he informed
Almacen Pepe criticized the end of tax exemption. He said that the increase in tax burden makes it increasingly difficult to maintain competitive prices and informed that the delicatessen is forced to increase the prices of products sold in stores. “We hope you understand the current situation, imposed by the state government, in case there is a question from any loyal customer or consumer in our stores,” he said.
The Federation of Commerce of Goods, Services and Tourism of the State of Bahia (Fecomércio), the Federation of Industries of the State of Bahia (Fieb), the Brazilian Association of Bars and Restaurants (Abrasel) and the Bahia Association of Supermarkets (Abase) were contacted to talk about the increase, but there was no response until the publication of this article.
*With guidance from sub-editor Monique Lôbo
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