Alana Aiche do Carmo Dahrouj
Lawyer at Marcos Martins Advogados
A recent decision handed down by the 2nd Public Finance Court of Campinas suspended the effects of Decree 65.353/2020, which increased the ICMS rate in São Paulo.
The ICMS/SP rates were increased as of February 15 by the publication of several Decrees regulating the state government’s new tax measures, known as the “Fiscal Adjustment Package”.
With the considerable tax increase, the company went to court to obtain a suspension of the effects of the aforementioned Decree, claiming that the measure was unconstitutional because it was a matter reserved for the Law.
After analyzing the case, a decision was handed down accepting the request for a preliminary injunction, suspending the enforceability of the credit relating to the increase required by the new rate, also indicating the need for in-depth analysis for a definitive judgment on the matter.
The removal of the new rates will certainly bring significant peace of mind to the company, as well as serving as a basis for other companies that have also been affected by this increase.
Marcos Martins Advogados makes its tax team available to answer any questions on the subject.
