Government cancels ICMS tax increase for some items.
The government of Paraná has suspended the ICMS (Value-Added Tax) increase for some products; among the items that benefited are medicines, biodiesel, and machinery; the tax would have increased from 12% to up to 25%. According to the state government, the decision was made based on requests from the productive sector to maintain the state's competitiveness.
Paraná 247 The government of Paraná has suspended the increase in the Tax on the Circulation of Goods and Services (ICMS) for some products. Among the items that benefited are medicines, biodiesel, and machinery.
The adjustment to the ICMS tax rate was approved by the deputies in the Legislative Assembly at the end of 2014. The measure was part of the so-called "package," a series of austerity measures aimed at boosting government revenue. According to the proposal regarding the ICMS increase, the tax rate would rise from 12% to up to 25%.
Governor Beto Richa (PSDB) published three decrees this Wednesday (1st). The areas that will continue with the old rates are those that work with forklifts, crawler tractors, road rollers, loaders, motor graders, backhoes, hydraulic excavators, wires, cables and other electrical conductors and transformers.
According to the state government, the decision was made based on requests from the productive sector to maintain the state's competitiveness.