Brazil to Apply Nationwide ICMS Tax Rate on Import Goods

 
From January 1, 2013, Brazil authority will implement a nationwide new tax at 4% on import goods, replacing various provincial tax rates, to eliminate frictions among provinces.

At present, Brazilian provinces keep 7%-12% commodity circulation tax on import goods, and some provinces will slash their rates to attract enterprise tax payment. As a result, many import goods enter the tax-lower provinces and then transfer to other provinces for sale, leading to long clashes among the provinces for the tax revenue.