The Senate approved, this Wednesday (6.Oct.2021), a PLP (Complementary Law Project) that extends for 15 years tax benefits granted by states to sectors of commerce. The project had already been analyzed by the Chamber and is now going for presidential approval. Thus, it only depends on the President of the Republic that the text becomes law.
The project provides for the extension of benefits in the ICMS (Tax on the Circulation of Goods and Services) for the wholesale trade sectors and companies that develop port and airport activities. In addition, traders and interstate transporters of agricultural products and in natura plant extracts can benefit.
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The purpose of these tax benefits is, in practice, to attract companies and encourage investment. The text provides for a gradual reduction of the benefits extended over the last four years of the 15 planned. Only the sector of sales of agricultural products and in natura vegetable extracts are not included in this reduction.
The project supports the benefits granted by the states and the Federal District through internal regulations, but without the endorsement of Confaz (National Council for Finance Policy). The episode became known as the ICMS “tax war”. If the bill is not converted into law, these benefits will once again be considered illegal as of December 2022.
With information from Brazil Agency