MP (Interim Measure) 255/2022, which reduces ICMS rates on gasoline, ethanol, and electricity in the state, has been processed by Alesc (State Legislature of Santa Catarina).

This issue is awaiting the direction of the CCJ (Commission on the Constitution and Justice) for a vote of deputies in the plenary and may become law in Santa Catarina.

The goal is to convert the Interim Measure, which provides for a maximum ICMS fee of 17% in the state – Photo: Leo Munkhoz/ND

The goal is to transform the MP, which entered into force on 1 July, into law. According to Alesc’s internal regulations, the case must be approved and formalized by law before August 29, however, if necessary, a delay can be requested.

In this matter, two articles of Law 10,279/1996 are amended. The first reduces the top tax rate on electricity, gasoline and ethanol from 25% to 17%. According to the Minister of Finance of Santa Catarina, Paulo Eli, this change should lead to a loss of the state’s annual income of about 3 billion reais.

In another article, the state government is extending the ban on ICMS charging transmission and distribution services and industry charges related to electricity transactions. The Minister of Finance estimates an annual decline in revenues of more than 1 billion reais.

The legislation came into effect after Federal Supplemental Law 194/2022 was passed, which began to address essential goods and services related to fuel, electricity, communications, and public transportation, prohibiting states from charging a rate above 17%. .

The interim measure will be reviewed for acceptability by the CCJ and the Alesc Plenary. If recognized, she returns to the standing committees to draft the bill that would create the law.