EN 
PT_BR 
A Chamber of Deputies approved, this Wednesday (25), the basic text of the PLP 18/22 (Complementary Bill No. 18/2022), which prevents the application of ICMS rates at levels equal to those of superfluous products for the segments of electricity, fuels, natural gas, communication services and public transport, considering them essential and indispensable.
The measure, therefore, establishes a ceiling of up to 17% for the collection of state tax on these goods and services. The text now goes to the Senate for a vote, requiring a simple majority of votes to receive presidential approval.
According to the substitute for the rapporteur, deputy Elmar Nascimento (União-BA), for PLP 18/22, from deputy Danilo Forte (União-CE), there will be, until December 31, 2022, compensation paid by the Federal Government to the states for the loss of tax collection through discounts on installments of refinanced debts of these federated entities with the Union.
Electric energy and ICMS
In Brazil, the ICMS on electricity varies depending on state to state, with Roraima having the lowest rate (17%) and Rio de Janeiro the highest (32%). On average, the value charged by the states is around 26%, a value well above the 17% that provides for the maximum tariff in the bill.
Despite bringing relief to consumers, the initiative has been criticized by state governments, which predict losses of more than R$ 100 billion with the drop in tax collection on electricity and fuel.
ICMS is a tax that represents a large part of the revenue obtained by states and municipalities. The amount is collected with the aim of being invested in essential services for the population such as security, health and education. In 2021, the tax represented 86% of the total revenue of Brazilian states, totaling around R$ 652 billion.
