Members of the state administration, including the Government Secretary, Gilberto Kassab, and the Finance Secretary, Samuel Kinoshita, met with leaders from the area to hear arguments about the impacts of the tax increase
The government of São Paulo began dialogues with representatives of the service sector to discuss the possible review of the ICMS increase from 3.2% to 12%, scheduled to come into force on January 1, 2025. The measure would directly impact bars, restaurants and hotels, which defend the renewal of a tax benefit that has existed since 1993. On Monday (16), members of the state government, including the Government Secretary, Gilberto Kassab, and the Finance Secretary, Samuel Kinoshita, met with sector leaders to hear arguments about the negative impacts of high taxes. Representatives of the Federation of Hotels, Restaurants and Bars of the State of São Paulo (Fhoresp) stated that the increase could result in the closure of establishments and the loss of jobs.
During the meeting at Palácio dos Bandeirantes, the executive director of Fhoresp, Edson Pinto, highlighted that the increase in ICMS would make São Paulo the State with the highest tax burden for the food away from home sector. According to Pinto, the change would discourage new investments and result in an immediate increase in prices for consumers. “There is a risk of doors being lowered and jobs being closed,” he warned. Fhoresp’s Director of Institutional Relations, Sylvio Lazzarini, also criticized the measure, stating that it would create a barrier to the growth of small companies. According to Lazzarini, the end of the special regime would discourage businesses from exceeding the Simples Nacional revenue limit, which serves companies with annual revenue of up to R$4.8 million.
Kassab signaled support for the sector’s request, promising to take the matter to governor Tarcísio de Freitas (Republicans). Samuel Kinoshita demonstrated a willingness to negotiate the maintenance of the special regime, in force for more than three decades. The São Paulo government argues that the end of the tax benefit would only affect medium and large companies, while 80% of bars and restaurants covered by Simples Nacional would be preserved. However, sector representatives consider this analysis “disconnected from reality”.
Negotiations between the government and the food sector are expected to continue in the coming months. Fhoresp and other entities, such as the National Federation of Collective Meal Companies (Fenerc) and the Union of Bars and Restaurants of São Paulo (Sindresbar), intend to intensify the mobilization to avoid tax increases and preserve the competitiveness of the sector in São Paulo .
Published by Felipe Cerqueira
