Feb 11 • 20:25 UTC 🇧🇷 Brazil Folha (PT)

São Paulo charges R$ 120 million in ICMS after changes in tax regime

The state of São Paulo is set to collect R$ 120 million in ICMS from more than 13,000 establishments following a change in the tax regime affecting various product categories.

The São Paulo Tax Authority (Sefaz-SP) has notified over 13,000 establishments that are now required to pay ICMS (Tax on Circulation of Goods and Services) due to a change in the tax regime effective from January this year. This regulatory adjustment involves the removal of more than 130 items from a special tax collection system that mandated the tax be paid only at manufacturing, affecting products including light bulbs, household items, medicines, food, alcoholic beverages, and construction materials. The expected potential revenue from this change is around R$ 120 million, contingent upon voluntary compliance from businesses.

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