New ICMS project should harm residents of this state

To compensate for losses that may arise from limiting ICMS collection, some states may increase the rate.

Estimated reading time: 3 minutes

There is a bill that is being processed in Congress, which could bring great changes to the electricity bill of Brazilians. PLP 18 establishes a limit of 17% to 18% for ICMS rates on fuel, electricity, telecommunications and transport.

The text, approved on June 13 in the Senate, must undergo a new vote in the Chamber of Deputies, as it undergoes changes. The limitation of ICMS is the government’s main strategy to try to reduce the value of the electricity bill. The same, despite the return of the green flag in April, continues to be one of the items that weigh the most on the family budget.

According to Aneel, the average decrease in the value of energy charges can be 12%. However, the result can vary greatly, depending on the state of the consumer. Each state adopts a different methodology for charging the ICMS rate.

Some even adopt different ranges, considering the level of energy consumption. In some, there is also an exemption from the tax up to a certain level of consumption.

To offset losses that may arise from limiting the charge, some states may increase the rate. Or even start charging the same from families that consume less energy.

The state of São Paulo is one of those that adopt different rates according to the level of consumption. Those who consume up to 90 kWh per month in the capital of São Paulo do not pay ICMS. Those who consume between 90 kWh and 220 kWh pay a 12% rate. However, those who consume between 220 kWh and 500 kWh pay 30% tax.

However, to compensate for the loss of revenue in this last range, the state can raise the ICMS for families that consume less. In addition, it can limit or end the exemption to the lowest range.

However, limiting ICMS may benefit consumers in states that currently adopt a single, high rate. This is the case of Minas Gerais, which charges a 30% tax on energy consumption, and Bahia, which charges 27%.

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Image: Andrzej Rostek /

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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