SP: ICMS transfers to municipalities will be made available this Tuesday (18)

Economist Hugo Garbe explains that ICMS is a state tax levied on the movement of goods, interstate and intercity transport services, and communication. The value that goes to the city halls corresponds to 25% of the tax collected, which is divided among the municipal administrations based on the application of the Municipal Participation Index (IPM) defined for each city.

According to the economist, the Federal Constitution establishes that a portion of the ICMS collected by the states must be transferred to the municipalities, with the objective of promoting financial decentralization and regional development.

“The distribution of these resources is carried out based on criteria established in state laws, taking into account factors such as the value added in the movement of goods and the number of inhabitants of each municipality. This means that less developed municipalities can receive a larger share. of resources,” he says.

Transfers generally take place every week, on the second business day of the month, but may vary according to the legislation of each state. In the first transfer of the month, the municipalities of São Paulo received R$ 737.5 million. For July, the estimate is to transfer to municipalities the total of R$ 3.3 billion in ICMS.

Hugo Garbe points out that transferring ICMS to municipalities is essential for financing municipal activities, such as the provision of public services, investments in infrastructure, health, education, among others, contributing to local development.

“By receiving these resources, municipalities have more capacity to invest in infrastructure, attract companies, stimulate trade and entrepreneurship, generating jobs and income for the population”, complements Garbe.

Economist César Bergo points out that the transfer facilitates the collection of municipalities, which now have their own resources to finance activities and projects. “It is important, because with these resources, city halls can carry out better financial management — and it also contributes to the balance of public accounts”, he explains.

tax schedule

The values ​​of ICMS transfers vary according to the deadlines established for the payment of the tax. Depending on the month, there can be up to five transfer dates. These variations in deposits occur according to the monthly calendar, payment terms and the amount of money collected.