The exemption from the Tax on Circulation of Goods and Services (ICMS) on several products caused a loss of revenue of R$ 5 billion for the state of Rio de Janeiro, said this Tuesday (7) the governor of Rio de Janeiro, Cláudio Castro . He met for about two hours with the Minister of Finance, Fernando Haddad, to ask for a review of the state’s Fiscal Recovery Regime (RRF).
According to Castro, Haddad promised to review the basis of agreement signed in June last year, but said he will only start discussing the matter after resolving the negotiations for the provisional measure that increases the cost of gasoline and ethanol. The governor pointed out that the state is not considering leaving the RRF, but defended the revision of the agreement to avoid imbalance in local accounts and problems in the public service.
Last year, complementary laws 194 and 192 established a maximum ICMS rate of 18% on fuel, telecommunications, energy and public transport. Before the law, the state charged up to 32% of ICMS. According to Castro, the drop in state revenue, caused by the exemption, made it impossible for the government of Rio to honor the installments of the debt with the Union foreseen for this year.
“The regime [de Recuperação Fiscal] do Rio was signed a week before the enactment of laws 194 and 192. At that time, our tax collection reality was one, so the plan was approved. As soon as 194 and 192 come into force, they change our collection base, which changes the whole perspective of the payment plan”, said Castro after leaving the meeting with Haddad.
Just with the ICMS on fuel, says Castro, the loss of collection reached R$ 3 billion last year. For this year, he estimates an even greater impact, of R$ 10 billion, considering all exempt items, not just fuel.
Compensation
The very laws that relieve ICMS, a tax administered by the states and the one that collects the most in the country, provide for the loss compensation collection, which is being negotiated with the federal government since the beginning of the year. According to Castro, Haddad promised to resolve the compensation within ten days and, only afterwards, discuss a possible revision of the Rio de Janeiro RRF.
The federal government wants to spread the compensation over the four years of its mandate, but there is disagreement regarding the values. The states and municipalities are asking for R$45 billion. The National Treasury promised half: R$ 22.5 billion. On the last 28th, Haddad met with the minister of the Federal Supreme Court (STF) Alexandre de Moraes, rapporteur of the state debt agreement in the court, to discuss the subject.
Regarding the collection of ICMS on gasoline and ethanol, Castro said he suggested to the Governors’ Forum a rate of 22% or 23%, valid for the entire country. “[Essa alíquota] it would replace losses and would not reach the absurd value that it was before”, declared the governor.
