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Oil and Gas Industry Will Be Exempt from ICMS Payment on the Acquisition of Machines and Equipment for Interstate Exits
In an effort to encourage job generation and stimulate the growth of São Paulo’s GDP next year, the State Government announced on Wednesday, 29, the reduction of the Tax on Circulation of Goods and Services (ICMS) for some key sectors of São Paulo’s economy. The oil and gas equipment sector was one of the beneficiaries.
The government of the state of São Paulo has benefited the following sectors of the economy with the ICMS reduction: Medicines, Used Vehicles, Electric Vehicles, Natural Juices and Beverages, as well as Oil and Gas Equipment.
The oil and gas equipment sector will have a different rate compared to other sectors. The rate changes from 12% this year to exemption starting January 2022.
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“With the recovery of investment capacity in the state of SP, we have managed to meet our fiscal targets and thus we will make it possible to reduce taxes in SP and anticipate the tax exemptions for the economy of SP starting January 1, 2022,” said Governor João Dória.
How the Oil and Gas Sector Will Function in São Paulo in 2022
As the oil and natural gas industry is a major generator of jobs and income, the state government has decided to stop charging 12% for the purchase of machines and equipment for interstate exits.
The government of the state of São Paulo stated that by benefiting employment-generating sectors, it is possible due to the state’s fiscal adjustment, in addition to an economic growth above the national average.
With the changes, it is expected that the sectors will develop even further, generating more job openings in the state and recovering once and for all from the serious consequences of the pandemic.
