Energy VAT temporary cap
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.
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