STF sets up panel to mediate dispute between states and Union on fuel ICMS

A special committee will be set up under the Federal Supreme Court (STF) to mediate between the Union and the states on the rate of Goods and Services Tax (ICMS) on fuel.

The measure was decided this Monday (18) by Minister Gilmar Mendes, who is the rapporteur of two actions on the subject in court.

The group’s main task is to discuss presidential vetoes of a bill that caps the ICMS levied on fuel at 18% and to check potential disagreements over the fiscal implications of the rule change.

The commission will be composed of representatives of the Union, the states and the Federal District, the Federal Senate, the Chamber of Deputies and the Federal Court of Audit (TCU).

Municipalities can also nominate two names as observers. The first meeting is scheduled for August 2. The works should be completed within three months.

In the decision, Gilmar Mendes argues that the measure will allow for a broad debate between federal organizations and civil society, as the commission will listen to public accounting and collection experts.

The Minister also requests the National Secretariat of the Treasury (STN) to appoint a public servant who is authorized to provide evidentiary elements of interest to the inquiry, including information on ICMS tax revenue for each state and Federal Territory, every 12 months. until June 2022.

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