The Tax on Goods and Services - GST and Environmental Improvement of Incentives for Environmental Public Policy at the Municipal Level: The Case of Municipalities in the Metropolitan Region of Recife - PE

Abstract

The Value Added Tax-Social/Environmental ICMS has as proposal, in summary, financial compensation and promote the sustainable development in cities, stimulating the search for results in environmental, economics and social aspects. So, this dissertation aims to investigate the contributions of this instrument to environmentally sustainable development, by stimulating the biodiversity conservation, and suitable treatment systems and final disposal of solid waste, in cities of Recife Metropolitan Region - RMR. The methodology had quantitative and qualitative approach, by documental analysis, accounting data of cities analysis, biodiversity conservation city indices, and from score of solid waste. It is worth mentioning that questionnaires have been applied in the eleven most populous cities in the RMR. An interview has as well been conducted with the person in charge of the calculation of the Social/Environmental ICMS the Department of Finance of the State of Pernambuco. At the end it was observed that the main contribution of the Social/Environmental ICMS for environmental public policies is just the stimulus for the receipt of the financial resource allocated by the transfer of the ICMS collected in the state of Pernambuco for municipalities. As a recommendation, it is suggested to be adopted, in practice, qualitative variables for the criterion “conservation units”, the percentage increase for the criterion for “solid waste” and included the process of selective collection in the municipalities as more scores in the transfer of the Social/Environmental ICMS.