Transferências ambientais e coordenação federativa: do ICMS ecológico ao IBS ecológico

Abstract

This article discusses the implications of Brazil’s Tax Reform for the policy of transferring resources to municipalities based on environmental criteria defined by state legislation (Imposto sobre Circulação de Mercadorias e Prestação de Serviços – ICMS Ecológico). The Tax Reform created the Tax on Goods and Services (Imposto sobre Bens e Serviços – IBS), which replaces both the ICMS and ISSQN (service tax). As a result, the 17 existing state laws on the Ecological VAT will need to be revised, and new regulations will be required in states that have not yet adopted environmental criteria for municipal transfers. The article outlines the changes introduced by the new framework, including the expansion of the tax base and the standardization of a 5% share for transfers based on environmental criteria. It is estimated that annual transfers to municipalities under environmental criteria will increase from the current BRL 5.3 billion to BRL 10.4 billion, equivalent to 0.1% of Brazil’s GDP. State autonomy to define performance criteria has been preserved, reinforcing the role of the Ecological IBS as a coordination tool for environmental policy goals among state and municipal governments. However, it is crucial to ensure the proper identification of relevant indicators and their effective monitoring – both in urban and rural areas – so that the future Ecological IBS drives significant improvements in municipal environmental management.