PL that provides exemption from ICMS for solar energy in MT is approved in 1st vote

The ALMT (Mato Grosso Legislative Assembly) approved, unanimously and in the first vote, PLC 28/21 (Complementary Bill n.18/2021) which amends the text approved by the House, in 2019, which deals with the exemption collection of ICMS (Tax on Circulation of Goods and Services) related to solar energy.

According to the author of the proposal, state deputy Faissal Calil (PV), the initiative foresees the change after several users pointed out that, in their electricity bills for April, the tax was included. The parliamentarian stated that the concessionaire that operates the distribution of electricity in Mato Grosso had provoked the state government to charge ICMS to consumers who have photovoltaic plants.

“When the law was approved, in 2019, there was an error in the wording that ended up opening gaps for misleading interpretations and, in April of this year, under provocation from Energisa, the state government began to tax the sun. This is an aberration and we, as Parliament, cannot let this happen. Because of this, we are going to change this device so that we are not held hostage by Confaz (National Council for Financial Policy, linked to the Ministry of Finance)”, he highlighted.

Calil also highlighted that it is necessary not only to end once and for all any loophole that could allow taxation, but also to encourage this type of energy source, considered cleaner, ecological and economical.

“We, in the Legislative Assembly, unanimously, are against the taxation of the sun and, to this end, we presented a bill that excludes the final part of the previous text, which indicated that the conditions set out in Confaz should be obeyed. With this, the popular will reigns and we make the battle we experienced in 2019 count, when we obtained the ICMS exemption on solar energy,” he stated.

According to the deputy, the new text, approved in the first vote, only clarifies and corrects the previous one, not giving incentives or benefiting a specific category. The parliamentarian also stated that the state government must sanction the new text, or it will appear to approve undue taxation.

“All of this was dealt with, agreed with the government and approved. If we had wanted to delegate this definition to Confaz, we would have done so at that time. The text has always provided for exemption and we are not modifying something to grant a benefit, but rather removing a section that allowed for a dubious interpretation. If the governor vetoes this project, it will be because he wants to tax solar energy,” he concluded.