Welfare Taxes are Levied on Price Adjustment arising from Indexation for Inflation

The Superior Court of Justice ruled that P.I.S. and COFINS – welfare taxed on monthly gross income – are levied on price adjustments arising from interest and indexation for inflation of the sales price. The Court found that such price adjustments are included in the total sales price of the merchandise and, thus, should be included in P.I.S./COFINS tax bases. (Special Appeal No. 674,445)