Supreme Court to Rule on 1% Cofins-Import Tax Surcharge

The Supreme Federal Court has begun reviewing the legality of the 1% Cofins-Import tax surcharge. Justices formed a majority in the Virtual Plenary to recognize the general repercussion of the issue. The final ruling will require lower courts to follow the Supreme Court's stance.

The case involves Law No. 10,865 of 2004 and Provisional Measures 774 and 794 of 2017. The court will evaluate whether the revocation of a provisional measure allows for the automatic resumption of the tax provided in the previous law. The central debate focuses on the legal validity of this restoration of effectiveness.

Another relevant point is the application of the 90-day waiting period. The justices will decide if the government must respect this interval before resuming tax collection. Currently, there are conflicting rulings between the Supreme Court chambers and regional courts regarding the necessity of this delay.

Justice Edson Fachin highlighted the importance of settling the matter to avoid legal uncertainty. The trial seeks to standardize the understanding of the nature of Cofins and the rules for legislative validity. The final decision will directly impact the tax liabilities of companies that perform import operations in the country.