States postpone increase in ICMS on imported products from 17% to 25%

The Finance Secretaries of the 26 states and the Federal District decided to postpone the discussion on increasing the ICMS rate on imported products from the current 17% to 25%, which was on the agenda of the meeting held this Wednesday (13) by the National Committee of Finance Secretaries. Farm (Comsefaz). The adjustment would also affect purchases up to US$50, which are exempt from import tax.

The discussion had been scheduled for the meeting after the president of the committee, Carlos Eduardo Xavier, stated that the increase was necessary to “bring competitive equality between goods produced within Brazil and those that are purchased outside on these digital platforms”, and that has the import rules defined by the Conform Remittance program, of the Ministry of Finance.

Comsefaz stated that the discussion was removed from the agenda at the request of the secretaries themselves, but left open the possibility of the rate adjustment being resumed “at another opportunity”.

“It is important to highlight that in the event of a decision being taken by Comsefaz on another occasion, in order to review the current value of the rate, the change will have to be approved by the respective Legislative Assemblies of the 26 states, in addition to the Federal District”, said the committee.

The entity also stated that the increase in the ICMS rate on imports from 17% to 25% also aims to create and maintain jobs in industries, which they say are suffering unfair competition with imports purchased on digital platforms. “The states are imbued with the objective of strengthening the country’s economy, generating more jobs and income in the national territory”, he added.

The increase in taxation on purchases made on digital platforms has become a frequent request from the productive sector to the government and reached a climax at the beginning of this year when the national confederations of Industry (CNI) and Commerce of Goods, Services and Tourism (CNC) appealed to the Federal Supreme Court (STF) against the import tax exemption for low-value goods intended for individuals.

On the other hand, within the government itself there is discussion of resuming the import tax, and vice-president Geraldo Alckmin (PSB) himself has already shown himself in favor. In November last year, he stated that the implementation of the Conforming Remittance program and the application of the ICMS equally to all states were the first step.

“What do I defend? Competitive freedom. (…) But there is no decision taken in this regard”, he said at the time, who also serves as Minister of Development, Industry, Commerce and Services (MDIC).

Minister Fernando Haddad, of Finance, confirmed that there are internal discussions, but that the topic “is controversial in the government and in Congress” and that a decision on this will only be taken if there is “maturation”.

The possibility of resuming the import tax also occurs at a time when the government is trying to maintain the goal of eliminating the deficit in this year’s public accounts, requiring more revenue.