The governor of Minas Gerais, Romeu Zema (Novo), began to face opposition from entities and businesspeople who supported him in the electoral campaign and are the main pillar of political support for his government. The sector is pressing for him to give up on the proposal to increase the ICMS rate by two percentage points on goods considered superfluous, which includes alcoholic beverages, cell phones, cosmetics, perfumes, cigarettes and weapons. The bill is under discussion in the Legislative Assembly of Minas Gerais (ALMG).
The Federation of Industries of the State of Minas Gerais (Fiemg), the Federation of Chambers of Store Managers (FCDL-MG) and the Federation of Commerce of Minas Gerais (Fecomércio-MG), which claims to represent 740 thousand companies. The entities argue that the increase will harm the competitiveness of Minas Gerais companies in comparison with those in other states and increase the price of products for consumers.
The government of Minas Gerais estimates that the increase in the rate will raise R$800 million to R$1.2 billion per year from 2024 onwards. The resources will be allocated to the Fund to Combat the Eradication of Extreme Poverty (FEM). Zema’s proposal contradicts the position of the Partido Novo, which published on its editorial website entitled “The best social policy is cutting spending and taxes”, in which it criticizes statements by President Luiz Inácio Lula da Silva (PT).
Zema stated this Friday, the 22nd, that the collection of two percentage points was carried out “for many years”, including during his first term, and that even so there were delays in payments to suppliers and state public servants.
“This demonstrates the seriousness of our financial situation. I know that there are demands, I respect them and I am sure that the deputies will make a decision that meets the needs of the population, but that also does not make the state’s cash flow unviable. Otherwise, we We are going to have very serious difficulties”, said the governor of Minas Gerais at a press conference. He presented the proposal to increase the ICMS at the end of August, just over a month after sanctioning the expansion of tax benefits for car rental companies in the State.
President of Fiemg, Flávio Roscoe is one of the businesspeople closest to Zema, having been responsible for helping to bring the governor and former president Jair Bolsonaro (PL) closer together. In a video published on social media, he declares that the “ideal” is that there should be no tax increase and asks that, at least, the government review the list of what is considered superfluous, such as toothpaste and toothbrushes.
“We have been in dialogue with our parliamentary base,” he said, also asking that, if approved, the increase in the rate would only be in force until 2026. According to the current text, the charge would be permanent. “We understand that raising the rate, and our economic studies demonstrate this, in the medium and long term compromises the competitiveness of these segments here in the State, which would reduce future revenue”, added Roscoe.
The additional charge of two percentage points of ICMS to finance the FEM was created in 2011 during the government of Antonio Anastasia, at the time in the PSDB. Since then, it has been renewed by all governors, including Zema himself in 2019. However, he was unable to renew it within the necessary deadline last year and the extra rate was no longer charged this year.
Nadim Donato, from Fecomércio-MG, states that the entity supports the Zema government. “This is a moment, not that (the relationship) has shaken, but it does not mean that the Federation of Commerce of Minas, because it supports the Zema government, will accept all the proposals that come from the government”, he said. Frank Sinatra, from FCDL-MG, adopts a similar line. “We have nothing against the government, we are against increased taxation,” he declared.
Pet food will be removed from the list of superfluous goods
Despite the pressure, the only point that Zema has given in so far has been to remove pet food from the text. Therefore, even if the project is approved, the ICMS charge on the item will remain at the current rate of 18%. Other products vary: beers would go from 23% to 25%, while weapons, cigarettes, perfumes and soft drinks would have a rate of 27%.
“There is some consensus in the House”, said the president of ALMG, Tadeu Martins Leite (MDB), on Thursday, 21. “The issue of food not being considered superfluous. This (the increase in this item) will be removed from the text by all deputies. The other amendments will be analyzed in the committee so that we can try to vote on this project next week”, he added.
Governor also faces difficulties at ALMG
Zema is running against time: the proposal needs to become law by October 3rd so that the ICMS increase can be charged from January 1st, 2024. Ultimately, the text needs to be approved and sanctioned by the end of the year. year. Otherwise, the charge can only be made from 2025.
Even with the support, at least on paper, of 57 of the 77 state deputies, the governor has faced difficulties in putting the project to a vote. A meeting of the Financial and Budgetary Inspection Committee to analyze amendments to the text was suspended on Thursday due to lack of agreement on the text and rescheduled for Monday, 25th. Only after this phase can the project be voted on in the 1st round.
Vice leader of the opposition, Lucas Lasmar (Rede) questions the allocation that the Zema government has given to FEM resources. According to him, 40% of the fund’s resources were directed to school transport, 22% to the “other services and legal entities” category, and 17% to contributions and hiring at MGS, a state-owned company owned by the government of Minas Gerais. “It’s an unprecedented misuse of purpose,” he declared.
See the products listed in the project:
– Non-alcoholic beers and alcoholic beverages, except sugarcane spirits or molasses spirits;
– Cigarettes, except those packaged in packs, and tobacco products;
– Armas;
– Soft drinks, isotonic drinks and energy drinks;
– Pet food; (will be removed)
– Perfumes, colognes, cosmetics and toiletries, except shampoos, anti-sun preparations and toilet soaps for personal use;
– Food for athletes;
– Cell phones and smartphones;
– Photographic or film cameras and their parts or accessories;
– Equipment for sport fishing, except safety equipment; It is
– Sound or video equipment for automotive use, including speakers, amplifiers and transformers.
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The post Project that increases ICMS in MG pits Zema against businesspeople who support him appeared first in Jornal de Brasília.
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