Gasoline will go up to R$ 0.34 at pumps; and ethanol, R$ 0.02 with the partial increase in fuel costs, said the Minister of Finance, Fernando Haddad. The values consider the reduction of R$ 0.13 for a liter of gasoline and R$ 0.08 for a liter of diesel announced earlier by Petrobras.
In order to maintain the collection of BRL 28.88 billion expected until the end of the year if fuel rates returned to last year’s level, the government will raise the Export Tax on crude oil by 9.2% for four months to obtain up to BRL 6.6 billion. A new provisional measure will be issued later this to haveTuesday (28) for the new prices to take effect from this fourth (1st).
The new provisional measure (MP) is valid until the end of June. From July, informed Haddad, the future of the exemption will depend on the result of the vote in Congress. If parliamentarians do not approve the MP, the rates will return to last year’s levels, with total reencumbency.
Last year, former president Jair Bolsonaro zeroed the rates of the Social Integration Program (PIS) and the Contribution for the Financing of Social Security (Cofins) for gasoline, ethanol, diesel, biodiesel, natural gas and cooking gas.
On January 1, President Luiz Inácio Lula da Silva signed the Provisional Measure 1,157what foresaw the reenactment of gasoline and ethanol from March 1st and that of other fuels from January 1st, 2024.
Before the exemption, PIS/Cofins was charged as follows: R$ 0.792 per liter of gasoline A (without ethanol mixture) and R$ 0.242 per liter of ethanol. Among the possibilities discussed between the executive secretary of the Ministry of Finance, Gabriel Galípolo, and Petrobras, are the absorption of part of the increase in rates by Petrobras, because gasoline is above the international price, and the redistribution of part of the original rates from gasoline to ethanol. Galípolo and Petrobras representatives met this Monday (27).
With the partial reencumbrance, the PIS/Cofins rates, which today are zeroed, they will increase to R$ 0.47 for a liter of gasoline and to R$ 0.02 for a liter of ethanol. By virtue of a constitutional amendment, the difference in taxes between gasoline and ethanol should be R$ 0.45. The impact for the consumer will be smaller precisely because Petrobras will use part of the “mattress”financial reserve set up by the company because gasoline and diesel were above the international average price, to absorb part of the increased impact.
tax impact
Haddad said he hoped the oil company could reduce the price at a faster pace than announced. “Our expectations were higher. Petrobras’ pricing policy is not being discussed. We await the company’s decision on fuel prices in March to decide on the reencumbrance, ”he explained.
Regarding the impact on public accounts, the minister said that the commitment assumed at the beginning of the year to reduce the primary deficit is maintained. “The target established by the Ministry of Finance in January is a deficit of less than 1% [do PIB]. It’s from to have a new fiscal framework approved to establish the necessary balance for the country to return to growth”, declared Haddad. With the increase in the tax on crude oil exports, the government will continue to reinforce cash with the R$ 28.88 billion announced in January.
The minister also rejected allegations that the reinstatement means an increase in the tax burden. “We are not thinking about increasing the tax burden. We are thinking about recomposing the Budget in terms of revenue and expenditure, keeping revenue and expenditure within the historical average”, he declared. He pointed out that the taxation of oil exports will impact Petrobras and other crude oil exporters by 1% of the sector’s profit. “This value [de 1%] is in the provisional measure”, he highlighted.
Haddad said he hoped the measure would help the Central Bank to reduce interest rates in the future. According to him, current rates are high and harm the recovery of the Brazilian economy.
State debt
Announced for 5 pm, the press conference started 35 minutes late. Before granting the interview, Haddad went to the Superior Electoral Court (TSE) to meet with Minister Alexandre de Moraes. The two discussed the state debt agreement, of which Moraes is the rapporteur at the Federal Supreme Court (STF).
The government tries to way to split the compensation of the Tax on the Circulation of Goods and Services (ICMS) to replace losses with the limitation of rates on fuel, natural gas, energy, telecommunications and public transport. Tax administered by the states, the ICMS is levied on consumption and is the tax that collects the most in the country.
