The 2nd Public Treasury and Public Records Court of Campo Grande ordered the city hall to recalculate the public transport fare including the Tax on Services of Any Nature (ISSQN) charged to the Guaicurus Consortium, the concessionaire that operates the justice service. Currently at R$ 4.10, the value of the pass is expected to increase with the direct collection of the tax.
The charge had been in place since last year, but the city failed to factor the ISSQN into the calculation, prompting the consortium to challenge the government. Since the city government refused to accept the appeal, the group went to court.
André Borges, lawyer for the Guaicurus Consortium, explained to Correio do Estado that a deposit account will be opened for the dealership to deposit the collected tax. "The tax must be calculated like fuel, tires, and employee salaries, which are already in the account.
Judge recognizes
"Currently, approximately R$200,000 per month is collected and will be deposited into a court account. The judge recognized that this calculation was illegal, and the city will have to redo it," he said.
In a statement, the city hall said that it had not yet been notified of the decision and therefore would not comment.
In his ruling, Judge Ricardo Galbiati also orders the municipal government to pay the costs of the lawsuit. "In view of all the above, I grant the ruling that the enforcement authorities redo the 2020 urban public transportation fare assessment process, while considering the impact resulting from the tax burden generated by the ISS collection, and that the plaintiff begin to collect the ISS through deposits in the Single Account available to the Court, until the end of the administrative tariff review procedure."
"I order the coercive authorities to pay the legal costs and cease to award attorney fees, pursuant to the provisions of Precedent No. 512 of the Federal Supreme Court and 105 of the Superior Court of Justice. A subaccount linked to this case should be opened so that deposits can be made starting with the next tax due date," he wrote.
HISTORY
The 2019 salary adjustment was marked by several setbacks, leading to yet another delay. Contractually, it was supposed to take place in October, but it wasn't authorized until December. The first impasse stemmed from tense salary negotiations between the concessionaire's management and drivers.
The drivers' salaries are one of the factors that determine the fare. The drivers requested a 13% increase, an increase in the food voucher, and a reduction in working hours. The consortium refused and offered 2,55%, which led the workers to schedule a protest, which was ultimately canceled. Some organizers of the movement, which began in early December, were subsequently fired.
Meanwhile, Mayor Marcos Trad (PSD) stated that the tax on fares will not impact bus passes. "The concessionaire will provide the adjustment to drivers between December 20th and 22nd. This will be measured when the Consortium submits the spreadsheet. But one thing is certain: the return of the ISSQN tax will not impact the fare increase," he said.
Businessmen and workers
The uncertainty led the parties to negotiate before the Regional Labor Court (TRT24). Ultimately, employers and workers agreed to a 3.5% increase.
With this decision in place, the Regulatory Board, affiliated with Agereg, finally met on December 19th to determine the fare increase. However, the group's meeting was marked by tension. The Guaicurus Consortium voted against the adjustment, questioning the fare band that applies to the Effective Passenger Kilometer Index (IPKe). Without this cap, the fare at the time would have been R$ 4.05 and would have risen to R$ 4.22.
The reason why ISSQN was not included in the calculation was also questioned, but the observation was disregarded. Thus, the value of R$ was set at 4.11.
Mayor Marcos Trad decided to round the fare to R$ 4.10, signing a decree on December 26. The fare for executive buses increased from R$ 4.80 to R$ 4.90. The concessionaire subsequently challenged the adjustment. In the document, the group of companies emphasized that, based on the contract, the amount that should have been adjusted in the seventh year of the contract—which was signed in 2012—would be R$ 4.63, not R$ 3.95 as it was at the time.
Tariff Adjustment
However, on January 7, 2020, the TCE suspended the increase. In his decision, Councilor Waldir Neves argued that the adjustment granted by the city government was unacceptable after judicial irregularities were discovered. "The tariff adjustment reveals a variation much higher than inflation. From 2012 to 2019, the tariff variation was 146.30%, while the IGP-M [General Market Price Index] for the period was only 49.26%, the IPCA [Broad National Consumer Price Index] was 49.06%, and the Savings Index was 55.31%," the Councilor wrote. After 12 days, the decision was suspended so that the parties could formalize a Management Adjustment Agreement (TAG).