The extension of the deadline for Minas Gerais to join the Fiscal Recovery Regime is also on the Supreme Court’s agenda
The STF (Supreme Federal Court) will analyze this Wednesday (Aug 28, 2024) 2 cases involving the municipal tax ISS (Tax on Services). One of the cases should have an impact of R$ 35.4 billion for the Union.
The Court must also discuss extending the deadline for Minas Gerais to join the RRF (Fiscal Recovery Regime).
One of the cases analyzed by the STF discusses the applicability of the ISS in industrialization operations that integrate intermediate stages in the production cycle. The TJ-MG (Court of Justice of Minas Gerais) has already recognized that these activities, even though they are intermediate, are considered core activities and, therefore, subject to taxation.
The second case, with the greatest fiscal impact, discusses whether the ISS amount should be included in the PIS/Cofins calculation basis. The decision could affect the federal budget by R$35.4 billion, as estimated in the LDO (Budget Guidelines Law) project for 2025. This judgment is comparable to the “thesis of the century”, where the STF excluded the ICMS (Tax on Circulation of Goods and Services) from the PIS/Cofins calculation basis.
The trial of this action is tied. In the virtual plenary, 8 votes were cast and there is a tie. The rapporteur was Celso de Mello, who has already retired from the Court. He voted to consider the inclusion unconstitutional.
Celso de Mello was accompanied by Cármen Lúcia, Rosa Weber and Ricardo Lewandowski. Dias Toffoli voted to allow the charge and was accompanied by Alexandre de Moraes, Edson Fachin and Luís Roberto Barroso.
The votes of the retired ministers (Celso de Mello, Rosa Weber and Ricardo Lewandowski) remain. The ministers who are still on the Supreme Court may change their understandings.
MINAS GERAIS
The STF’s trial agenda includes the analysis of the extension of the deadline for Minas Gerais to join the RRF (Fiscal Recovery Regime). The deadline for this joining has already been extended several times by the Court – the last deadline given by the Supreme Court expires this Wednesday (August 28).
The Minas Gerais government, led by Romeo Zema (New), which awaits the sanction of a project that allows the renegotiation of state debts. The text has already passed the Senate and awaits a vote in the Chamber.
#STF #judges #cases #impact #billion #Union #Wednesday