Brazilian states and cities roll out tax debt relief programs

Several Brazilian state and municipal authorities have launched tax debt refinancing initiatives (REFIS) for 2026. The Rio Grande do Norte state program offers up to 99% discount on interest and fines for ICMS debts, with a single‑payment option receiving the full discount and a six‑installment option receiving up to 90% off. Municipal programs in Cuiabá, Guajará‑Mirim, Varginha, Itabuna, Foz do Iguaçu, and Marechal Cândido Rondon similarly provide large reductions—often 100% on interest and penalties—for taxes such as ICMS, IPVA, ITCD, ISSQN and other municipal levies, with deadlines ranging from late July to December 2026. Some schemes set minimum debt thresholds (e.g., R$ 100 k for small firms in Varginha) or allow debt offset using precatórios. The Rio Grande do Sul tax authority warned that vehicle owners who fail to pay IPVA by mid‑July will be entered into active debt registers, facing additional penalties. These programs aim to boost municipal revenues, regularize taxpayer status, and fund local services.