Representatives of states and the federal government met today (3) in another hearing of the commission that seeks conciliation involving the compensation of the Tax on the Circulation of Goods and Services (ICMS) on essential products, such as fuel, electricity, communications and collective transport. . 
At the meeting, the states defended the exclusive competence of the National Council for Finance Policy (Confaz) to deal with the tax rate and again asked for the immediate compensation of revenue losses with installments of debts with the Union.
In addition, state representatives want the participation of nominees by elected governments in this year’s election to expand negotiations.
The commission’s work would end tomorrow (4), but the parties agreed to extend the discussions for further hearings. The first meeting was held in August this year.
The issue is discussed in the action in which President Jair Bolsonaro defends the limitation of the tax rate, in the 26 states and the Federal District. The legal impasse began after the enactment of Complementary Law 192/2022. With the law, states were prevented from charging more than 17% or 18% of ICMS on these goods and services.
Local governments claim that the laws dealing with ICMS on fuels hamper state budget programming and bring down revenue.
