Energy VAT temporary cap

Country / jurisdiction: Brazil · Year: 2022 · Status: In force · Level: National · Type: Voluntary

In an effort to protect domestic consumers from the effects of the energy price crisis, the Federal government of Brazil enacted a cap on electricity, fuels and transportations services VAT (ICMS) at 18% in the country, until the end of 2022. As the tax is administered by States, who are also in charge of rate-setting, a compensation is planned by law if loss in revenues are higher than 5% of the amounts collected in 2021.

Official source: http://www.planalto.gov.br/ccivil_03/LEIS/LCP/Lcp194.htm