21 Brazilian states and the Federal District are due to readjust the ICMS (Tax on the Circulation of Goods and Services) in 2024, six of which will increase the rate to 19.5%, as stated in the Joint Letter signed by the Finance Secretaries of Espírito Santo, Minas Gerais, Paraná, Rio de Janeiro, São Paulo and Rio Grande do Sul. This decision is linked to the approval of the Tax Reform text by the Federal Senate and reflects a significant change in the tax scenario.
Source: https://www.poder360.com.br/economia/sp-mg-rj-es-e-pr-subirao-icms-para-195-por-causa-da-tributaria/
The justification given by the states for this increase is related to the need to rebalance tax collection, especially after the impact caused by the essentiality of goods and services mentioned in Complementary Laws 192 and 194 of 2022. This measure is part of an effort to ensure fiscal and financial stability in the face of changes in tax legislation.
According to the Finance Secretaries, the collection of taxes by the states over the next five years will play a significant role in determining tax revenues over the next 50 years.
It is essential to observe how these changes will affect taxpayers, companies and consumers. They will have a major impact on the economy, on the prices of products and services, as well as on companies’ tax strategies.
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