The Governor of the State of São Paulo has recently filed eight Direct Actions for Unconstitutionality against decrees issued by the States of Rio de Janeiro, Espírito Santo and Mato Grosso, which granted ICMS tax benefits.

The arguments are that Rio de Janeiro, Espírito Santo and Mato Grosso would have granted tax benefits based on acts hierarchically inferior than law and without the support of a previous covenant executed with the other States.

Six lawsuits have been filed (ADIs 4929, 4930, 4931, 4932, 4933 and 4931) against the State of Rio de Janeiro. Among the challenged benefits one can mention those granted to the sectors of copper (Decrees n. 43.503/2012 and n. 43.502/2012), salt used in meals (Decree n. 38.746/2006), bus manufacturing (Decree n. 43.457/2012), perfumes, cosmetics and similar products (Decrees n. 35.418/2004 and n. 35.419/2004), among others.

Direct Action for Unconstitutionality n. 4935 was filed against the State of Espírito Santo arguing the unconstitutionality of the 33% reduction of the ICMS due on interstate remittances by wholesalers for resale or manufacture purposes. (Decree n. 1.090-R/2002).

Finally, Direct Action for Unconstitutionality n. 4936, filed against the State of Mato Grosso, argued the unconstitutionality of the 50% presumed credit granted to slaughter houses and cold storage plants on the interstate remittances of cattle and buffalo meat, and edible organ meats of various types (Decrees n. 563/2011, n. 604/2011 and n. 719/2011).

(STF News, Apr. 02, 2013).