Source: Gramado Website - Gramado / RS - 24/05/2010

Among the measures announced by the governor Yeda Crusius in response to the demands of the industry in Rio Grande do Sul, is the extension of the ICMS payment period for tax substitution on domestic sales.

The date goes from the 23th to the 2,3rd of the second month following the operation. "This measure will benefit with more working capital about XNUMX thousand companies, which will have two more weeks to collect the tax", says the governor.

The measure applies to fifteen sectors included in the tax substitution (see list below). The Finance Secretary, Ricardo Englert, pointed out that in addition to the extension of the term, the State Government also responded to another lawsuit regarding the tax substitution of industries in the cosmetics and perfumery segment included in the Simples Nacional. “Given the demand in the sector, we are enabling these industries to deduct the amount of their own debt as if the operation were taxed at the normal ICMS rates (17% or 25%) and not at the reduced rate of 12% (recently reduced for companies higher), which generated an increase in the portion related to tax substitution, which increased the amount to be paid in tax substitution by 5% or 13%, considering that the final product charge (17% or 25%) was recomposed. " This benefit significantly reduces the debt of these companies in the operations that they may carry out in the future.

States discuss improvements in tax substitution protocols
Last week, representatives of São Paulo, Minas Gerais and Rio de Janeiro met at the Secretariat of Finance in Rio Grande do Sul. According to the undersecretary of State Revenue, Júlio César Grazziotin, updates were discussed at the meetings on the tax substitution protocols between these states. “We are going to make adjustments to the product lists of the segments and also revisions in value added margins,” explained Grazziotin.

As in tax substitution the tax is paid in advance, there is a need to stipulate an added value margin, which is the reference price on which ICMS is charged. This value is the average market price, the result of research done, in most cases, by specialized institutes and also by the Secretariat of State Revenue, in the case of Rio Grande do Sul. The changes must be part of changes in the ICMS Protocols, in the within the National Council for Farm Policy (Confaz), and are likely to be effective as of July 2010.

Segments benefited from the measure:

Cosmetics, perfumery, toiletries and toiletries
Auto Parts
Bedding articles
Pet food for domestic animals
Construction material
Electric material
Tools
Wines and hot drinks
Bikes
Toys
Cleaning material
Food products
Household artifacts
Musical instruments,
Stationery
Electronic products, electronics and appliances

(with information Press Office of the Government of the State of Rio Grande do Sul)