STF maintains incidence of ICMS on TUSD and TUST on electricity

The majority of the STF (Supreme Federal Court) followed the injunction granted by Minister Luiz Fux, which resulted in the resumption of the collection of ICMS by Brazilian states on transmission and distribution services and sectoral charges linked to operations with electrical energy.

Ministers Nunes Marques, Cármen Lúcia, Alexandre de Moraes, Edson Fachin and Dias Toffoli followed Minister Fux's vote.

Minister Gilmar Mendes followed the vote with some reservations. The only minister who disagreed with Minister Fux's vote was Minister André Mendonça, who despite agreeing with the resumption of the tax, disagreed with the reasons presented in rapporteur Fux's vote.

With the majority formed, the TUSD (Tariff for the Use of Electrical Distribution Systems) and the TUST (Tariff for the Use of Electrical Transmission Systems) are subject to inclusion in the ICMS base by the states, maintaining the decision imposed in the injunction granted by Minister Fux.

As reported by Canal Solar, all Brazilian states can now change their decrees to resume the collection of tax on TUST and TUSD, aiming at collecting state governments.

Consequently, the resumption of the tax on tariffs should produce a new increase in Brazilian consumers' electricity bills.

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