Alckmin proposes higher VAT on beer and tobacco and lower ICMS for food


Part of the additional revenue from superfluous goes to fight poverty.
Governor also reduced taxes on medicines, rice and beans.

The governor of São Paulo, Geraldo Alckmin (PSDB), sent to the Legislative Assembly this Wednesday (28) a package of measures that proposes to increase the rates of the Tax on Circulation of Goods and Services (ICMS) for cigarettes and beer and a reduction the same tax on generic drugs. By decree, the governor zeroed the ICMS on rice and beans and reduced the tax on sand used in construction.
The package also includes the creation of a state fund to fight poverty. This fund will be supplied with approximately R $ 1 billion generated with the increase in the superfluous tax. Another R $ 1 billion will be allocated to the state treasury and R $ 500 million to the municipalities. The governor also proposed the creation of a debt installment program (PPD).


Source: Globo G1 (28/10)

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