Overview
- In a unanimous ruling, the STF barred states from adding up to 2% to ICMS on electricity and telecommunications used to fund anti-poverty programs.
- The decision stems from challenges to laws in Rio de Janeiro and Paraíba and is expected to guide similar cases in other states.
- The justices relied on Complementary Law 194/2022, which classifies the sectors as essential and blocks higher ICMS rates on them.
- To cushion public finances, the court allowed the surcharge to continue through 31 December 2026, with reporting noting a specific 1 January 2027 cutoff for Rio.
- Key questions remain as outlets differ on whether states must refund past collections, while at least eight states still levy the charge and Rio collected R$412 million from telecom in 2025.