Mato Grosso do Sul can tax Bolivian natural gas

On April 22, the Supreme Federal Court (STF) will to judge the taxation of Bolivian natural gas with the Tax on the Circulation of Goods and Services (ICMS).  The action determine whether or not Mato Grosso do Sul will have the exclusive right to tax the product.

In the action, the Midwestern state government asks exclusivity of charging the ICMS fee on the import of gas from Bolivia. The argument is that the transaction takes place in Mato Grosso territory, which completes the importation of the product by Petrobras, since the beginning of the operation of the brazilian carrier Gasoduto Bolivia-Brasil S.A. (TBG).  

The trial, scheduled for next month, will be decisive for the finances of Mato Grosso do Sul. If approved, the action will be a guarantee of stability of revenue that has been decreasing year after year, but which is still extreme relevance to the State. If not approved, the State will lose about R$ 1 billion, according to the governor Reinaldo Azambuja (PSDB).  


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