The Brazilian Supreme Court, in a temporary ruling Thursday evening, gave Congress another year to find ways to compensate state governments for lost sales taxes on export products. Under a 1996 act, known as the Kandir Law, most export products are exempted from payment of state sales taxes. However, the law provides for federal government compensation to the states for revenue lost under the law. Congress, however, has never acted to provide for the compensation, leading to complaints and suits from state governors. The ruling, given on a temporary basis by a single judge, could still be overturned by the full court.
Link to government news agency releaseMore Testimonials