09/14/2023 – 20:55
This Thursday, the 14th, the Chamber approved the bill that deals with the agreement made by the federal government with the States to compensate for losses with ICMS collection last year. There were 349 votes in favor, 68 against and two abstentions in the base text. The proposal was forwarded to the Senate.
The project foresees an advance of R$10 billion in resources to States and municipalities, either through direct transfers from the Treasury or debt relief. The text also determines that the Union makes an extra transfer of R$2.3 billion to the Municipal Participation Fund (FPM) and another R$1.6 billion to the State Participation Fund (FPE).
The initial text presented by the Executive only regulated the agreement made between the Union and federative entities, and approved by the Federal Supreme Court (STF), which provided for compensation of around R$27 billion to the entities between 2023 and 2025 for losses in ICMS collection. last year – when former president Jair Bolsonaro sponsored the temporary reduction in state tax on items such as fuel, electricity, communications, in the midst of the electoral race.
However, amid pressure from mayors almost a year before the elections, parliamentarians began to defend a solution in the project itself to increase the transfer of federal resources to municipalities for this year. The agreement included in the report was made in partnership with the Ministry of Finance.
Of the R$27 billion in the legal agreement between the Union and States, around R$9 billion was compensated due to court decisions. Of the remaining R$18 billion, approximately R$15.64 billion will be compensated through reductions in the amounts of state debt installments and R$2.57 billion through direct transfers to the States and the Federal District. Municipalities are entitled to a constitutional share of 25% (which amounts to R$18 billion) of the amount owed to each State.
To satisfy the mayors, the project establishes that the compensation amounts for ICMS losses scheduled for 2024 will be brought forward to this year through a direct transfer from the Union, either via direct transfer or debt relief – the so-called “account meeting”. The total amount transferred will be R$10 billion.
“The measure serves the States, the Federal District and, in particular, the municipalities, which have been impacted by drops in revenue and legal transfers due to measures such as the correction of the Income Tax table”, says the text. The anticipation does not change the compensation schedule scheduled for 2025.
The project also requires States to prove the transfer of 25% from municipalities. Even if the federative entity has benefited through debt reduction, an appeal must be sent directly to the city halls. The rapporteur also included an amendment in the project to oblige the Union to directly transfer the municipalities’ share if the States do not do so within 30 days.
In addition to the anticipation, the text also provides for coverage of FPM’s real losses in July, August and September of this year, in the amount of R$2.3 billion. The report also determines that, at the end of 2023, the Union will supplement the fund’s resources if there is proof of a real reduction in the transfer taking into account all months of the year.
In the case of the FPE, the value of the recomposition will be R$ 1.6 billion to mitigate revenue losses of federative entities in the months of July and August this year, after negotiations carried out today by the rapporteur with party leaders of the Chamber. The president of the House, Arthur Lira (PP-AL), expressed his displeasure with the inclusion of this measure, but Zeca ended up reaching an agreement.
Fuels
The project’s rapporteur, deputy Zeca Dirceu (PR), who is also the leader of the PT in the House, once again denied that there is a loophole in its text for federative entities to increase the ICMS rate charged on fuels.
“I wanted to clarify that some things are being revoked at the end of the text, but at no point is this changing ICMS taxation, its essentiality. Never, with this law, will any State be able to charge more than 18%. It can never be changed [com o projeto] the way the tax rate is charged”, declared Zeca.
In the original version of the project, a loophole allowed States to increase the rate. But the text was modified by the rapporteur, after the negative repercussion revealed by the Estadão/Broadcast.
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