São Paulo government tightens inspection of 300 companies in sectors with tax substitution


Source: Valor Online, 16/05/2008

SÃO PAULO - The São Paulo State Finance Secretariat (Sefaz) informed that this week it started a surveillance operation in 300 companies that work with products that make up the list of those included in the tax substitution regime, expanded this year by the government.

In this system, the tax on the entire production line is collected only in one phase of production, with the aim of reducing tax evasion.

The government's concern is with products that come from other states. In the case of purchase of goods - which are under this regime - originating outside of São Paulo, Sefaz says that São Paulo taxpayers are required to pay ICMS in advance.

Among goods subject to the tax substitution regime are medicines, alcoholic beverages, perfumery and personal hygiene products, animal feed, cleaning products, phonographic products, auto parts, batteries, batteries and electric lamps, as well as food products and construction materials and the like. .

With the implementation of the replacement system, the São Paulo government expects to increase the collection by around R $ 560 million per year.