Concrete Proposals for the End of the Fiscal ICMS War

a Consequentialist Analysis

Abstract

The article deals with the phenomenon of the tax war among Brazilian states, which manifests itself through the granting of tax benefits in the ICMS without respect for the legal and constitutional provisions. The aim is to analyze the positions that the States and the Judiciary have been adopting against the phenomenon, as well as some of the solutions that are identified by the doctrine. Moreover, the article makes a critical analysis of the concurrence of such positions and solutions with the constitutional principles, as well as their capacity to solve the conflict. To this end, an analysis is made of the reference legislation, doctrine and jurisprudence about the subject. Finally, it is concluded that the political, economic and social context which facilitates the occurrence of the phenomenon is only able to do so because of the patent ineffectiveness of legal sanctions. This finding calls for a proactive stance from the country’s powers and institutions with the aim of mitigating this phenomenon that proves itself so deleterious to the Brazilian Federation.