September 24, 2022
Electricity bill will be cheaper with ICMS reduction

Electricity bill will be cheaper with ICMS reduction

Understand the impact of ICMS reduction on your electricity bill

Estimated reading time: 3 Minutes

From now on, the Brazilian electricity bill should get cheaper, as electric power concessionaires must pass on to consumers the reduction in the Goods and Services Circulation Tax (ICMS). Thus, those who do not pass the reduction will have to pay a daily fine of R$10,000.

The measure was enacted on Tuesday (30) and according to the Ministry of Justice and Public Security, businesses must also demonstrate their compliance with it, by providing an example of an invoice sent to consumers by the fifth business day of the month. Measure.

Information about the amounts charged

The National Consumer Trust (Senacon) had already established, in July, that companies must prove that invoices sent contain clear information about the amounts charged, including a description of the services provided and the percentage of taxes charged for each one. However, the pass-through of the reduction has not been determined. Thus, the agency set the penalty for the fine.

Therefore, the reduction of taxes on electricity is part of the government’s measures to reduce inflation.

ICMS cap

On June 15, Congress approved the bill that limits the occurrence of ICMS on items such as diesel, gasoline, electricity, communications, and public transportation. The project was approved by Bolsonaro on the 23rd.

This is just one of the measures put in place by the federal government to curb high inflation in an election year, as this reduces the government’s popularity among its voters.

According to the text, the fuel is now seen as essential and indispensable, preventing states from charging rates higher than the overall ICMS rate, which is between 17% and 18%, depending on the location.

Previously, fuel and other goods included in the project were considered unnecessary. This brings the ICMS rate to 30% in some states.

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