ICMS exemption for Environmental Manaus avoid increase in water bill

The bill is now awaiting the sanction of the Governor Jose Melo (Pros).
09/05/2016 17h06 - Updated 9/05/2016 17h06
Photo: reproduction

The Government of Amazonas will grant exemption from the Tax on Circulation of Goods and Services (ICMS) the energy bill of Manaus Environmental Company. The decision, contained in a Bill of State Executive authored approved late last month in the Legislative Assembly of the State (OF-AM)l and only waiting for the sanction of the Governor Jose Melo, Dealers will directly benefit the consumers of water and sewerage services, preventing the tariff increase. The waiver of tax will also serve to compensate for past debts water supply that the government has with the concessionaire.

According to the State Secretary of Finance, Afonso Lobo, the exemption is intended to offset the increase in generation costs and water treatment by Water Program Manaus (Proama) from April of last year. A Cosama, administering or system, increased 34,5% costs for supplying water to Manaus Environmental, leaving 0,44 for 0,59 cents per cubic meter of water.

"At one point, Cosam found that the need to raise the rate for 0,59 cents per cubic meter to cover operating costs and this difference would be transferred by the company to the consumer. To avoid, We gave this benefit of VAT and also added the state debt to the company ", said Afonso Lobo.

According to Sefaz, R$ 22,6 million is the amount to be compensated for the company with the exemption of ICMS. The value was obtained by adding the R $ 7,570 millions, disbursed by the company from the increase in operating costs in the period of one year - from April 2015 to April 2016 –, the debt of R $ 15 million from the State.

“To compensate for this value, we get the benefit of the VAT exemption, that goes up 2018, and that solves both problems - the state debt and ensuring that environmental Manaus will not pass on to consumers the increase in operating costs in the supply of water ", He explained the Secretary of Finance.

More benefit - is not the first time that the Government of Amazonas grants benefit of ICMS to avoid increases in water and electricity services. In October last year, Decree was published No. 36.307, which exempted the collection of Tax on Sales and Services (ICMS) consumers benefited by the Social Tariff Electricity. altogether, near 215 thousand families, equivalent to almost 1 million people, They have benefited from the reduction in account value of electricity.

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