Paraná advances bill to shield new taxes from ICMS base during reform transition

The Paraná State Assembly is considering Bill PL 523/2026, authored by Deputy Fabio Oliveira (Novo), which would remove the Contribuição sobre Bens e Serviços (CBS), the Imposto sobre Bens e Serviços (IBS) and the Imposto Seletivo (IS) from the calculation base of the state ICMS tax during the transition to Brazil's new tax system.

Supporters—including the G7 Paraná coalition, the state bar association (OAB/PR) and industrial bodies— argue the measure prevents a cascade of "tax on tax," protects competitiveness, and provides legal certainty for businesses. While the proposal does not create fiscal incentives or reduce state revenue, it aims to ensure that ICMS taxes only the economic transaction itself.

If enacted, the bill could become a model for other Brazilian states facing similar concerns about the 2027‑2032 transition period, when federal taxes will coexist with ICMS before full adoption of the reform in 2033. Experts warn that without such state-level clarification, widespread litigation could arise, affecting investment and consumer prices nationwide.