Governors support proposed compensation funded by offshore repatriations
Presidenta Dilma Rousseff and the governors, 
Brasília – During the meeting with President Dilma Rousseff, on Thursday (July 30), which lasted about three hours and a half, state governors from throughout Brazil advocated a proposal to standardize the Tax on Sales and Services (ICMS), Brazil's value-added tax levied by states at their own independent rates, as a needed measure to prevent the use of the ICMS collection as a weapon in the so-called “tax war”, by offering incentives to attract businesses.
According to the governor of Maranhão, Flávio Dino, the governors' acquiescence is conditional upon compensations for potential losses incurred by the states, including a “compensation fund formed by other sources besides repatriation [of offshore assets].” The proposed repatriation of [unreported] funds held by Brazilians in offshore accounts is under negotiation as part of the ICMS reform, since the [repatriated] money would be used to create two funds to compensate states for losses incurred with the single rate.
Chief of Staff Aloizio Mercadante urged governors to support the federal governor on this issue. “A single, gradually rolled-out tax law would help drive growth,” he said.
*With additional reporting by Ana Cristina Campos and Luciano Nascimento
Translated by Mayra Borges
Fonte: Governors support proposed compensation funded by offshore repatriations
