The meeting’s strategy is to discuss a plan to compensate states for limiting the ICMS rate approved during the Bolsonaro administration; the municipalities would be covered through transfers of the injected funds
After the mayors of 15 states announced Wednesday the 30th the interruption of the activities of the city halls to request further transfers from the federal government, the leaders and organizations of the PT organized a meeting this afternoon to contain the movement. In the Northeast, a stronghold of the PT, cities from all nine federal units in the region joined the protest.
The action, called “Without FPM it is not possible, the municipalities stop”, has the support of the National Confederation of Municipalities (CNM). According to the institution, there has been a reduction in the Municipal Holding Fund (FPM), in the Tax on the Circulation of Goods and Services (ICMS), as well as delays in the presentation of parliamentary amendments.
The purpose of this afternoon’s meeting is to discuss the possibility of speeding up the elaboration of the complementary law n. 136/2023, which proposes an injection of BRL 27 billion to the States and the Federal District, to compensate for the limitation of the rate on the movement of goods and services (ICMS) approved by the government of Jair Bolsonaro (PL) in June 2022.
If the project is approved, the municipalities will benefit, because part of the compensation received from the states will have to be paid to them. The author of the proposal is the deputy Zeca Dirceu (PT-RS).
A month after the tariff cap was approved, Congress overrode Bolsonaro’s veto on the Union’s obligation to compensate what states would not collect. With this the government had to make the transfer again.
Dirceu’s proposal envisages R$ 27 billion, but the specialists consulted by the Estadao they then stressed that the gap could reach around R$70 billion.
Some bodies representing the municipalities – National Confederation of Municipalities (CNM), National Front of Mayors (FNP) and Brazilian Association of Municipalities (ABM) – and some consortia of governors are confirmed at the meeting.
As shown the Estadaoone of the mayors’ complaints is that transfers from the Municipal Holding Fund have been made with delays and for lower amounts than in 2022. FPM is a percentage of what the Union collects in Income Tax (IR) AND Industrialized Products Tax (IPI)so it has no fixed value.
The complementary law proposal that will be discussed this afternoon by the leaders of the Workers’ Party places the emphasis on the issue of the limitation of the ICMS approved during the Bolsonaro government. The project was presented by Dirceu on July 3 and awaits a dispatch from the mayor, Arthur Lira (PP-AL), to start processing.
Source: Terra

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