Donations of goods to Rio Grande do Sul will be exempt from tax documents for transportation until the end of June, decided the National Council for Financial Policy (Confaz), a body that brings together the Finance Secretaries of the states and the Federal District. This is one of the aid measures for the state, which is facing a humanitarian crisis after the severe floods.
In addition to facilitating donations, Confaz made tax obligations more flexible. The implementation of the Electronic Invoice by rural producers in the state was postponed until January 1, 2025. Furthermore, the council authorized Rio Grande do Sul to exempt the purchase of machinery, equipment and parts necessary for the recovery of companies in the affected municipalities.
To alleviate companies’ cash flow, Confaz also authorized the Rio Grande do Sul government not to charge interest and fines for late payment of ICMS due between April and June. Confaz maintained ICMS credits for merchandise in stock that was lost, destroyed or stolen after the extreme weather event. The measure will prevent companies from losing assets and also being punished with the loss of previously accumulated tax credits (right to reimbursement).
In a statement, Confaz informed that the measures aim not only to help in the recovery of the affected areas, but to implement a structure that allows greater resilience to future climate and economic challenges.
