The government of São Paulo announced today (18) the reduction of the Tax on the Circulation of Goods and Services (ICMS) for ethanol from 13.3% to 9.57%, which will result in an impact of R$ 563 million in the collection until the end of the year. The waiver of revenue for the state is estimated at R$ 125.1 million per month. The government estimate is that the action will reduce the value at the pump by R$ 0.17.
Last month, São Paulo announced a reduction in the gasoline rate, from 25% to 18%. The ICMS on electricity operations was also reduced from 25% to 18% in relation to residential accounts with monthly consumption above 200 kilowatt-hours (kWh), and communication services.
