The Senate approved the bill that legalizes ICMS (Tax on the Circulation of Goods and Services) incentives granted by states and, depending on the sector, further extends the benefits for up to 15 years. It is no longer necessary for a state to obtain the unanimous agreement of all the members of the National Council for Treasury Policy (Confaz) in order to grant a tax incentive.
The bill addresses the regularization of incentives, exemptions, and tax benefits offered by the states over the years in disagreement with the legislation in force. The units of the Federation sought, with this, to attract companies and industries in order to generate jobs and economic growth. The competition among the states for these investments, with the use of incentives as an instrument, is known as the “fiscal war.”
The proposal, according to the Senate, has the objective of putting an end to this “war,” creating more flexible rules for these tax incentives and, at the same time, guaranteeing to the states that already have undertakings attracted through this practice their continuity.
Further details – The plenary of the Senate approved the bill on the night of the 12th. The matter was validated after great pressure from senators of the North, Northeast, and Central-West Regions, who would be the ones principally harmed by judicialization.
Originally submitted at the beginning of 2015, PLS 130/2014-Complementary underwent modifications at the hands of the deputies, who approved it in the form of a substitute (SCD 5/2017), now confirmed by the senators.
The text (SCD 5/2017) received 50 votes in favor and none against, in addition to two abstentions. The matter proceeds to presidential sanction.
Read the full report of the Senate Agency and the table with the term of validity of the new benefits here.
(Sources: Agência Senado/ jovempan.uol.com.br/ Valor)
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