Source: Zero Hora (Porto Alegre - RS) - 17/05/2012

The Union plans to reopen negotiations with States this year to change the Tax on Circulation of Goods and Services (ICMS). It is a strategy of President Dilma Rousseff to implement a sliced ​​tax reform.

It will thus be touching the point where the attempts at change of the last 20 years have sunk. The technicians believe that the chances of advancing this time are greater. Before focusing on the ICMS, however, the economic team has another priority: the cost of electricity. Taxation represents half the tariff, and the federal government is willing to waive part of the specific fees it charges. The discussion on electricity should be concluded in the second half, when the reform of the ICMS should gain momentum.

The change that the government wants will not necessarily decrease taxation, but it will eliminate the main ammunition from the fiscal war and make ICMS more similar to the value added taxes of the United States and Europe. The proposal is to reduce and standardize the ICMS tax rate on interstate transactions.