Author: Claudia Rolli

Source: Folha de S. Paulo - DINHEIRO - 11/12/2009

LOCAL REPORTING

The Legislative Assembly of São Paulo approved yesterday (59 votes in favor and 9 against) Bill No. 1.137, by Governor José Serra, which provides for about 70 changes in the ICMS law and creates the possibility for the São Paulo Finance Secretariat Paulo communicate electronically with taxpayers.

The increase from 18% to 25% of the ICMS rate charged on the solvent (input) that is mixed with gasoline was one of the points most criticized by the opposition and by businessmen.

The solvent, paint and varnish sector protested the increase. “To combat adulteration of fuel, the government cannot punish manufacturers of paints, varnishes, shoes and other members of the production chain that use the solvent as a raw material”, says Rui Ricci, director of SindSolv (national union of the solvent trade ).
“The increase in the rate will have an impact of 4% to 7% on our prices. The final consumer will be punished with this increase in the tax burden. ”

Otávio Fineis Junior, coordinator of the Tax Administration of the São Paulo State Finance Department, says that the measure is justified because the tax authorities identified that “false” chemical industries were opened with the objective of buying solvent from refineries and adulterating gasoline.
“The input [solvent] destined for the chemical industry paid 18% of ICMS. Then, fraudsters claimed that the destination was chemical industry, when, in fact, the input was used to adulterate fuel. With the increase in the rate, we will end this competitive advantage ”, he says.

According to Fineis Jr., the problem of adulteration of fuel is still serious and justifies the increase in the ICMS rate for the solvent. "In the approved bill, it was established that, if there is an impact [on costs] of the formal sector [which uses the solvent properly], the Executive Branch will be able to adopt compensatory measures", he says.

The creation of the taxpayer's electronic home (DEC), also approved yesterday, is one of the highlights, in Sefaz's evaluation. The electronic domicile will be used for the tax authorities to communicate with companies and individuals, make notifications and even assess, as Folha anticipated in September.

The approved project also provides that companies that do electronic commerce intermediation can be held jointly liable when and refuse to provide information to the tax authorities.

Another approved point is that which allows a discount of up to 70% on the fine applied in the tax assessment notices. To be entitled to the discount, taxpayers from São Paulo will have to pay the debt within up to 15 days from the notification. Today, the discount is up to 50%, as long as the debt is paid in 30 days.
“This project was called X-tudo, due to its complexity. The government should have made several separate projects for the topics to be analyzed carefully. Fearing difficulties, he decided to gather all the changes in one package ”, said deputy Roberto Felício (PT).