ICMS - Imposto sobre Circulação de Mercadorias e Serviços (Tax on the Circulation of Goods and Services) is the main state tax and is levied on the movement of products in the domestic market and on interstate and inter-municipal transportation and communication services. This tax is also levied on imported goods in general in order to promote isonomic tax treatment for imported and domestic products¹. It is basically a tax on consumption, dependent on full employment and household income.

In comparison to the other Brazilian states, Rio Grande do Sul ranks fourth in terms of nominal ICMS tax collection, after São Paulo, Minas Gerais and Rio de Janeiro. Regarding geographic distribution, the collection of ICMS in the State follows the concentration of economic activities, especially in the Porto Alegre-Caxias do Sul Hub. Secondary, Tertiary and Petroleum, Fuels and Lubricants sectors are the ones that generate the largest amounts out of the total collected in Rio Grande do Sul.

¹ Ministério do Desenvolvimento, Indústria e Comércio Exterior (Ministry of Development, Industry and Foreign Trade)

Fonte: FEE RS