10.6084/m9.figshare.9985955.v1 Nelson Leitão Paes Nelson Leitão Paes The economic effects of full ICMS credit compensation on investment in Brazil: the Federal Role SciELO journals 2019 ICMS investment capital goods vertical transfers 2019-10-16 02:49:19 Dataset https://scielo.figshare.com/articles/dataset/The_economic_effects_of_full_ICMS_credit_compensation_on_investment_in_Brazil_the_Federal_Role/9985955 <p></p><p>Abstract This article analyzes the impact of the immediate and integral compensation of ICMS on the investment through a general equilibrium model. The results suggest positive impacts on the economy, but with a revenue loss of 1.25% for states in the short term. In order to avoid this loss, one solution is to increase transfers from the Union to states and municipalities. In this case, short-term losses are limited to 0.5%, with long-term revenue gains of 0.1% for all federated entities. Removing ICMS on investment may result in long term revenue gains even without any increase in taxation.</p><p></p>