Source: DCI, 06/05/2009

SAO PAULO - The governors of Espírito Santo, Paulo Hartung, and the governor of São Paulo, José Serra, yesterday signed two technical cooperation agreements in the tax area and put an end to the controversy started at the end of March over credits from the Tax on Circulation of Goods and Services (ICMS) for import operations carried out through Espírito Santo ports.

The development secretary of Espírito Santo, Guilherme Dias, the measure was considered positive and satisfactory for Espírito Santo and São Paulo. “The signing of the protocol guaranteed legal security for the entire private sector, active in the area of ​​foreign trade. The measure also aims to guarantee the finances of Espírito Santo and the maintenance of jobs ”, explained the secretary.

Currently, the State's import sector has 275 Fundapean companies, responsible for generating 40 thousand jobs between direct and indirect. Data indicate that, last year, the collection in Espírito Santo reached the level of R $ 550 million.

Tax Substitution

The other cooperation term dealt with the implementation of the ICMS tax substitution mechanism for operations in São Paulo for Espírito Santo, involving products from the auto parts and pharmaceutical sector. The Espírito Santo government estimates that the agreement with São Paulo in both sectors will generate additional tax revenue of approximately R $ 40 million per year.