This is not the first or the last fiscal war among Brazilian states. Subsidies or surcharges, they compete for the installation of plants, to receive imported goods and passengers up for grabs on their roads instead of cars pass by neighboring states. [...]
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These states that sales tax overcharge claim that the beginning of this war is in tax incentives specifically to attract the mother lode of electronic commerce. This is the case of Tocantins, which has made arrangements with online trading companies that install its distribution centers in the state. [...]
The Tax on Circulation of Goods and Services (ICMS) for internet sales is collected where the product leaves, with no benefit for the place where it is delivered, hence the dispute. […]