Brazil’s São Paulo governor announces ICMS tax reduction for state’s bars and restaurants

RIO DE JANEIRO, BRAZIL – Governor João Doria on Wednesday, September 15, announced a reduction in the ICMS (value-added tax on circulation of goods) for bars and restaurants in the state.

According to the governor, the rate, which is currently 3.69%, will drop to 3.2%.

“The reduction will benefit some 250,000 companies and this was only possible after many discussions with the sector. This means a 13% reduction in cost. The sector that employs the most in the state needs this reduction,” explained Meirelles in a press conference at the Bandeirantes Palace.

Doria also announced a R$47.5 (US$9) billion investment program in construction works to be completed by the end of 2022. According to the governor, there are 8,000 projects that will generate 200,000 direct jobs.

Among the main projects are the Subway Line 6-Orange, extension of the Subway Line 2-Green to connect Vila Prudente to Penha, extension of CPTM train Line 9-Esmeralda to Varginha, the program to decontaminate the Pinheiros River, and the completion of the Duas Pontes and Pedreira dams, as well as new dams in Salto and Piracicaba.

According to vice-governor and government secretary Rodrigo Garcia, the value of the “PRÓ São Paulo” program is the largest ever invested in public works in the state’s history.

“We are completing the 2022 budget and will forward it to the Legislative Assembly in September, with R$25 billion in investments to add to this year’s R$22.5 billion, which makes up this total,” Garcia explained at the press conference.

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