Brazil Senate Approves ICMS Tax Bill; Text Goes Back To House(1)

Brazil’s Senate approved a bill that that would place a cap on the ICMS tax on fuel, electricity, public transport and telecommunications at 17%-18%.

• Text was approved by 65 votes in favor and 12 against
• In defeat for the government, senators approved an amendment that establishes specific compensation by the federal government for revenue losses that affect transfers to education and health
  • This compensation has no expiration date
  • Other compensations will be made until the end of the year
• Project has undergone changes and will have to return to the lower house
• Bill also scraps federal taxes on ethanol and ...