The National Council for Farm Policy (Confaz) decided on Friday, 15/08, at its most recent meeting, to suggest to the Senate to postpone discussions on the ICMS tax reform until after the elections. Bill 130, which is being processed by the Economic Affairs Commission (CAE), tries to end the unanimity requirement for the approval of tax incentives at Confaz.

The PL rapporteur, Senator Luiz Henrique (PMDB-SC), has not yet been officially notified of Confaz's request, according to José Clovis Cabrera, coordinator of the Tax Administration of the São Paulo Finance Department. The next meeting of the CAE is scheduled for September 2 and it is likely that the senator will speak on this date on the postponement of the vote.

Despite the request for postponement, states are seeking a rapid approval of the text. One way to pressure parliamentarians was the approval in July, by a group of 20 states and the Federal District, of a proposal to end the so-called fiscal war. Through ICMS Agreement No. 70, they undertake to withdraw the tax benefits granted without approval from the agency, as well as grant a tax amnesty to all taxpayers who were assessed for having used these incentives.

"The agreement brings the steps to arrive at a tax reform, which needs to urgently leave to attract and keep investors", says Hélcio Honda, legal director of the Federation of Industries of the State of São Paulo (Fiesp). For him, the change in the presidency of the Supreme Federal Court and in its commissions may cause the summary of the fiscal war to be edited ahead of schedule. “Therefore, a solution, with a strong pulse from the Union, cannot be delayed.”

According to Honda, a summary would precipitate the judgment of actions against incentives granted without authorization from Confaz in the lower courts. “The disaster would be the retroactive effect. Everything that companies gained with tax incentives, would have to be returned ”, says Honda.

Source: Online Value