The Minister of Finance, Fernando Haddad, and the Minister of Planning, Simone Tebet, went today (2nd) to the office of Minister André Mendonça, of the Federal Supreme Court (STF), to debate a judgment on benefits from the Tax on Circulation of Goods and Services (ICMS) with a tax impact of around BRL 90 billion in 2023 alone, according to official estimates. The Advocate General of the Union, Jorge Messias, also participated. The theme of the meeting was not officially confirmed, but members of the government confirmed that it was a judgment on ICMS benefits. Last week, Mendonça granted an injunction (provisional decision) suspending the decision of the Superior Court of Justice (STJ) favorable to the government. The process is closely monitored by the government, given the potential reinforcement of public coffers in the midst of debates on the new fiscal framework, under discussion in the National Congress. By granting the injunction, Mendonça complied with the request of the Brazilian Agribusiness Association (Abag), which argued the risk of a sudden increase in the tax burden on companies, given the possible expansion of the favorable understanding of the government to other federal taxes. He delivered the decision when the trial at the STJ was already in progress. The minister also stated that the Supreme Court itself also has proceedings on the exclusion or not of ICMS exemptions from the federal tax calculation base, which is why it would be necessary to await the Court’s decision before the STJ’s judgment could take effect. After a brief interruption, the ministers of the First Section of the STJ, the collegiate body responsible for fiscal and tax matters, decided to complete the analysis, even though the decision did not take effect immediately. Unanimously, it was decided by the STJ that tax incentives granted by states, responsible for collecting ICMS, should not be deducted from the calculation basis of Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL), which favors public coffers. This Tuesday (2nd), Haddad said he had demonstrated to Mendonça that the case on trial at the Supreme Court, which concerns the calculation basis of the Social Integration Program (PIS) and the Contribution for the Financing of Social Security (Cofins), is different from what was judged by the STJ. “In the first case, the Supreme Court ruled on a federal tax levied on a state tax paid by the taxpayer. Now it’s a federal tax on an unpaid state tax. The situation is totally different. I imagine that this should contribute to a quick outcome in the Federal Supreme Court”, said Haddad to the journalist on his return to the farm. In a session scheduled between May 5 and 12 in the virtual plenary, a modality in which votes are deposited electronically and not in person deliberation, the other ministers of the Supreme Court must judge whether or not they maintain Mendonça’s injunction.
Agência Brasil
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