backBrazil’s Federal Supreme Court (STF) has scheduled for Thursday, the 12th, the hearing of Direct Action of Unconstitutionality (ADI) No. 7077, which challenges the application of higher ICMS rates to telecommunications services in the State of Rio de Janeiro. During the same session, the Court is also expected to examine ADI No. 7716, concerning a similar increase in the State of Paraíba. Both cases further contest the allocation of an additional portion of the tax revenue to state-level anti-poverty funds.
In the Rio de Janeiro case, the reporting Justice, Flávio Dino, had previously suggested postponing the matter to allow for a coordinated review of related proceedings pending before the Court. Likewise, the Government of Paraíba has requested that ADI 7716 be deferred for the same purpose. That request remains under consideration by the reporting Justice, Dias Toffoli.
In the actions, entities representing the telecommunications sector argue that the increased ICMS rates are unconstitutional. They contend that telecommunications services qualify as essential services and, as such, should not be subject to tax treatment comparable to that applied to goods or activities deemed non-essential or luxury in nature.
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