Federal Senate should vote on MP 1,118/2022 this week

MP approved in August by the Chamber of Deputies provides tax benefits for the electricity sector
Canal Solar Senado Federal deve votar MP 1.1182022 nesta semana
The provisional measure will expire this Tuesday (27)

A MP 1,118/2022 (Provisional Measure 1,118/2022) should be voted on this week by the Federal Senate. The MP, reported by senator Acir Gurgacz (PDT-RO), was approved in August by the Chamber of Deputies.

The proposal's main objective is to change the Complementary Law No. 192, of March 11, 2022, which defines the fuels on which ICMS will be levied only once.

Upon approval in the Chamber of Deputies, an article was included in the MP that Postpones the deadline for entry into operation of enterprises that wish to maintain the TUSD/TUST discount. The term, which was previously 48 months, will now be 72 months.

With this, GC (centralized generation) enterprises that operate in the ACR (Regulated Contracting Environment) and ACL (Free Contracting Environment) that requested a grant by March 2nd of this year will be able to start the operation of all their generating units in the period of up to 72 months, counting from the date of issuance of the grant. In this way, these enterprises will have the right to discount transmission and distribution tariffs.

Deadline for voting

A MP 1,118 needs to be voted on by this Tuesday (27), otherwise it will lose its validity. According to Rodrigo Pacheco (PSD/MG), president of the Senate, this deadline will be met.

“Within the deadline set for these provisional measures, we will designate a Senate session to do so during the month of September, with the specific scope of the pending provisional measures. We have already appreciated many, there are still a few left, we will appreciate them within the deadline”, stated Pacheco.

Picture of Ericka Araújo
Ericka Araújo
Head of journalism at Canal Solar. Presenter of Papo Solar. Since 2020, it has been following the photovoltaic market. He has experience in podcast production, interview programs and writing journalistic articles. In 2019, he received the 2019 Tropical Journalist Award from SBMT and the FEAC Journalism Award.

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