Author: Elena Oliveira

Source: Financial Executives - SP - CAPA - 24/08/2009

Brazil is in urgent need of a reformulation of the legislation that deals with the ICMS (Tax on the Circulation of Goods and Provision of Services), since the treatment given to the tax by each federative unit is different, which causes disagreements between the states, as each one of them understands and applies taxation differently. This was the conclusion reached by executives gathered in São Paulo during a meeting of the Superior Council for Legal Affairs (Conjur) of Fiesp (Federation of Industries of the State of São Paulo).

"The collection as it is carried out today creates a liability for the company that takes its service from one state to another, in addition to legal uncertainty," said Hélcio Honda, director of the Legal Department of Fiesp. He also points out that currently there are many actions of unconstitutionality required in several federal units in the Federal Supreme Court, without mentioning a certain number. "Maybe there are hundreds of them," believes Honda.

Still from the same perspective, Marco Aurélio Greco, counselor at Conjur, who spoke during the event, says that a tax reform could change the situation. “We are hopeful that with the next (presidential) government the country will be able to carry out tax reform”. He says it is necessary, since the ICMS taxation can no longer be a federal matter.

The executives stated that Fiesp has been approaching this discussion in order to mature the critical sense of ideas that may contribute to the theme. However, both did not know how to define an agenda of meetings of the Federation to discuss the topic.