The São Paulo State Prosecutor's Office (MP-SP) has raised concerns regarding the recently approved Tax Code in Piracicaba, saying it could lead to confiscatory effects due to substantial increases in taxes. According to the MP-SP, the new rules may elevate the overall tax burden to such an extent that it jeopardizes the financial stability of taxpayers in the city. The changes, which affect several municipal taxes including the Property Tax (IPTU), are seen as potentially detrimental to property owners’ rights.

The alterations to the General Valuation Plan (PGV) and the rules governing tax collections could result in disproportionate tax increases that lack appropriate technical justification. Prosecutor Luciano Coutinho highlighted that if these increases go unchecked, many local taxpayers may find it impossible to maintain their properties or continue their business activities, leading to a significant erosion of their economic rights.

The impact of these legislative changes could trigger legal challenges if a requested injunction is granted, which would reinstate prior regulations regarding municipal taxes. The outcome could set a precedent for how tax laws are interpreted and implemented in the region, further influencing fiscal policies and taxpayer rights in Piracicaba and possibly beyond.