Tax credits recovered by utility Comgás are at the center of a dispute over piped gas tariffs in São Paulo, Brazil. They stem from the exclusion of ICMS from the calculation base for PIS/Pasep and Cofins, taxes that were included in tariffs and whose costs were paid by consumers.
On Monday (9), the 5th Public Law Chamber of the São Paulo Court of Justice unanimously granted an appeal by the São Paulo State Public Services Regulatory Agency (Arsesp) and the São Paulo State Attorney General’s Office. The decision overturned an injunction obtained by Comgás that suspended the financial effects of Resolution No. 1,776/2026 and allows the agency to continue procedures to benefit consumers.
Established following public participation, Arsesp’s rules take into account the volume of gas consumed, the costs of recovering the credits and the economic and financial balance of the contracts. The court also noted that tax changes can lead to tariffs being revised upward or downward when their impact is demonstrated.
