Paraná projects record R$28 billion tax waiver in 2027 budget

The 2027 State Budget Guidelines (LDO) for Paraná, prepared by Governor Carlos Massa Ratinho Junior, foresees a fiscal tax waiver of R$28.08 billion – the largest in the series since 2019. Almost the entire amount, R$27.6 billion, concerns ICMS concessions, representing about 98% of the total waiver and roughly one‑third of the state's projected revenue of R$84.5 billion for that year. The waiver is tied to programs such as “Paraná Competitivo” that aim to attract or retain private investment.

In the municipal capital Maringá, the reduction of the state‑wide vehicle tax (IPVA) rate by nearly 50% cut the city’s transfers by more than R$30 million. For the first four months of 2026, Maringá received R$85 million from IPVA, down from R$116 million the previous year. The city also saw lower health transfers and compensated the shortfall with a 30% increase in IPTU, boosting its own revenue by R$57 million.

These fiscal moves highlight the state’s reliance on tax incentives and the ripple effects on municipal budgets within Paraná.