The state decree came into force this Wednesday (1st) with the first stage of cuts in tax benefits to certain segments of the economy of Rio Grande do Sul. Defended by governor Eduardo Leite as necessary to recover revenues, promote fiscal balance and guarantee investments in essential services, the package will be complemented by other measures from January next year.
The text adjusts the Tax on Circulation of Goods and Services (ICMS) rate on a list of foods. With the measure now in force, products previously exempt or with a reduced tax base (whose effective rate was between 7% and 8%) will have the tax burden adjusted to 12%, with the exception of fruits, vegetables and eggs, whose adjustment rate will only come into effect in 2025.
Families with incomes of up to three minimum wages or half a minimum wage per capita with Bolsa Família will not be affected by variations in food prices due to increases in “Devolve ICMS” transfers. Furthermore, families that receive Bolsa Família (around 600 thousand families currently) will have an increase in purchasing power with the compensation.
The decree also provides for the deposit of up to 20% of the benefit amount into a state fund. Initially, the measure covered 64 economic sectors, however, after dialogue with economic entities, the government announced the withdrawal of 63 segments from the application of the decree, keeping only the agricultural pesticides sector. It is important to highlight that states with a strong agricultural vocation, such as Mato Grosso and Goiás, have a similar model of linking the use of tax benefits.
The measure will only be applied in January 2025 and will expand a determination that has already been in force since 2021, conditioning a part of the tax benefit called presumed credit, to the volume of purchases made in Rio Grande do Sul. With the change, 100% of the concession of the presumed credit will be subject to FAF rules. Currently, 15% are linked to the measure, which will cover 31 sectors.
The FAF is an instrument provided for by the National Council for Financial Policy (Confaz) and implemented in the State with the approval of the Legislative Assembly. The main objective of the measure is to strengthen and protect the internal market. The suspension of the FAF for the entire animal protein sector in the State also continues until December 31, 2024.
Devolve ICMS will undergo an increase in its fixed installment, which until now was R$100, rising to R$150 quarterly. The more than 600 thousand beneficiary families will receive R$600 per year, in addition to the variable portion, which is determined based on the income of the family responsible and consumption, identified by the CPF included in the tax documents at the time of purchases.
People registered with CadÚnico who receive Bolsa Família or who have a family member in state public education are entitled to Revolve ICMS. This ICMS redistribution model is unprecedented in Brazil and is important to reduce the burden of this tax on low-income families in RS.
In practice, those who earn less contribute less to the tax. Furthermore, Devolve ICMS encourages formality and local commerce. In other words, with the program, the State government is returning to the most vulnerable families an amount greater than what will result from the food repayment.
With the word…
According to the head of the State Finance Secretariat (Sefaz), Pricilla Santana, the Fruition Adjustment Factor (FAF), which aims to stimulate domestic purchases, is among the actions postponed until January 1st: “There is no change now, but in the At the beginning of next year, 100% will return, which will generate dynamism for the economy. The animal protein sector remains suspended from the FAF until January 2025, as we know about the impacts that several producers that we heard from are currently suffering.”
In the case of the re-encumbrance of food, fruits, vegetables and eggs will remain exempt until December 31, 2024. In relation to the deposit in the State fund of part of the exemption on agrochemicals, it will be limited to 20%, being applied progressively and starting at 10%.
In May, there will be an extraordinary deposit from the “Revolve ICMS” program to more than 600 thousand beneficiary families, who from now on will receive R$150 per quarter. The fixed installment supplement, for May and June, will be R$33.33 (R$16.66 for May and R$16.66 for June). The payment date, scheduled for the end of next month, will be announced in May.
Furthermore, to increase revenue collection and provide fiscal and financial mechanisms so that the State continues to fulfill its obligations, providing quality services and promoting investments, further expenditure adjustments will be made, including a planned 10% cut in tax benefits. next year.
(Marcello Campos)
