Brazil Lower House Approves ICMS Tax Bill (1)

May 26, 2022, 2:33 AM UTC

Brazil’s lower house passed a bill on Wednesday that determines a cap between 17% and 18% for state-level ICMS tax on fuel, natural gas, electricity, communications and public transport as it labels them as essential goods and services.

  • 403 lawmakers voted in favor and 10 voted against the bill
  • Lawmakers voted against amendments that could change the text and now it moves to Senate
  • Text requires the federal govt to compensate states that suffer a reduction greater than 5% in tax collections until Dec. 31, 2022
    • Compensation will be made through proportional debt relief with the federal govt

(Updated with ...

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