ICMS, the famous tax on the movement of goods and services, is giving something to talk about in São Paulo, due to the considerable increase in the percentage attributed to both new and used vehicles.
In the case of new ones, the rate went from 12% to 13.3%, while used ones went from 1.8% to 5.3%. This has sparked statewide protests over the additional charge that will affect thousands of jobs and businesses.
This Thursday (21), there were demonstrations and protests in several regions of the state of São Paulo, including the capital. The readjustment, which began to take effect on January 15th.
According to the state government, the increase was made to offset the resources the current administration had to reallocate to contain the Covid-19 pandemic in the region.
In a note, the São Paulo government said: “For almost 30 years, new and used vehicles have benefited from tax exemptions of up to 98%, in relation to the 18% rate of ICMS practiced in “Tax benefits like this cost more than $ 40 billion a year to the government of the state of São Paulo, which accounts for a third of ICMS revenue.”
What’s more … In April, new cars will pay 14.5% of the ICMS compared to the current 13.3%. However, used cars will fall to 3.9% in April.
In new cars, for example, entry cars have a difference of about 1,000 Spanish dollars between those charged in the state and in other regions of the country. In the case of the most expensive compacts, the difference reaches R $ 1.5 thousand.
Brands change prices
Well, no one will take the joke for the increase in ICMS, less than all the manufacturers.
Honda, for example, maintains the national prices of its cars, but on its website warns that the values are not valid for São Paulo, passing the ball to dealers.
At VW, the national price continues, as do Renault and Nissan. Chevrolet indicates domestic prices, but warns that they vary by state. Toyota puts Brasilia as the base price of its website.
Jeeps, like Fiat, are more transparent on their websites and indicate the difference between SP and other states. A Renegade STD, for example, costs R $ 85,429 in SP, but in MG, it costs R $ 83,990. That is, a difference of R $ 1,439, attributed to the increase in the ICMS.
In Minas, the Compass S Diesel costs R $ 227,990, but in São Paulo, it reaches R $ 236,285. That is a difference of R $ 8,295. You can even buy a motorcycle … At Fiat, Argo Drive 1.0 jumps from R $ 61,990 to R $ 63,029 or just over R $ 1,000.
Luiz Carlos Moraes, president of Anfavea, denounces that the increase in the ICMS tax in São Paulo could lead to a drop in sales, unemployment and the flight of investments in the state.
Moraes said: “The government of São Paulo thought about its collection and did not look at the consequences. The state is responsible for more than 40% of the production of the car industry in the country and we are considering a lower volume of growth of the car market in 2021, of 15%, due to this impact of the ICMS ”.
The issue is now complicated. GM has recently confirmed a $ 10 billion investment in São Paulo, where two of its car factories are located and where Brazil’s largest market is located. The projected fall is expected to affect the country’s manufacturers ’performance in 2021, a year that is expected to recover.[Fonte: G1/UOL]