Meeting ends without agreement on ICMS (IVA) TAX in SC - Brazil

The federal government does not accept the collection of 6% and the state estimates that the 4% proposed by the Federa[ Treasury is a very low base. The governor of Santa Catarina, Raimundo Colombo (PSD Party), and the Finance Minister, Guido Mantega, held on the morning of Thursday another round of negotiations on the unification of the ICMS(IVA) rate on interstate sales of imported products. Upon leaving the meeting, the governor said that there is still no agreement on the proposed rate. The federal government does not accept the charging of 6% and the state estimates that the 4% proposed by the Treasury is a very low base. About the products that they would lose the tax benefit, Colombo said to be close to a consensus on the exclusion of steel and polypropylene, for example. In relation to textiles, Santa Catarina agrees with the largest collection of readymade garments, but assesses that it is not possible to tax basic products as yarn and fabrics. It was also submitted to the Treasury an investment plan to offset the loss in tax collection, including works by transport and energy, as well as projects in the social area. The governor said he will now talk with representatives of other States that also loses with the change, with the industry of Santa Catarina and also with parliamentarians before meeting again with the economic team, which is scheduled for the next week.Source Agencia Estado, Translation EGE