President of Alesp: Tarcísio should talk about ICMS – 12/01/2023 – Panel

The president of the Legislative Assembly of São Paulo, André do Prado (PL), says that the government Tarcísio de Freitas (Republicans) needs to talk more before sending a bill to the House increasing the ICMS (Tax on Circulation of Goods) and Services).

“There needs to be more dialogue, to consider whether it really is time for a tax increase when productive sectors are complaining so much about the tax burden,” Prado told the Panel.

Increasing the rate has been considered by governors in the South and Southeast in preparation for tax reform. Each state’s participation in the collection of the new IBS will depend on the average ICMS revenue in the period 2024-2028.

The idea, however, faces strong resistance in the São Paulo Legislature, including among deputies from Tarcísio’s base who are more identified with former president Jair Bolsonaro (PL).

For the President and the House, no decision by the Palácio dos Bandeirantes should be taken hastily.

“Suddenly it is better to wait for the final format of the tax reform to see the real need for the increase. And call the productive sectors to talk”, he stated.

The dilemma, he adds, is how to combine the tax burden with the state’s financial health.

“The governor, as a liberal man, does not like raising taxes, but there is also the issue of fiscal responsibility. Some estimates are that the state will lose R$100 billion in the coming years if nothing is done,” he declared.

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