The states and the Federal District defined the rate of the Tax on the Circulation of Goods and Services (ICMS) on diesel and extended, for 90 days, the freezing of ICMS on gasoline, ethanol and cooking gas. The measure was unanimously approved at the meeting of the National Council for Finance Policy (Confaz), a body that brings together state finance secretaries.
In relation to diesel, a ceiling of R$ 1.006 per liter was set for the S10 variety, the most consumed in the country. Until now, ICMS on fuel was calculated as a percentage of the pump price, but Complementary Law 192/2022, sanctioned on the 11th by President Jair Bolsonaro, changed the way of charging and established a fixed value per liter.
Confaz also extended, until June 30, the agreement that freezes the basis for calculating the ICMS charged on gasoline, ethanol and cooking gas. Tax administered by the states, ICMS has been frozen since November last year.
As of July 1st, the single rate established by the supplementary law will come into effect. Currently, each unit of the Federation is free to set a percentage rate of ICMS on fuels. With the law, each type of fuel will need to have a unique rate, which will apply throughout the country.
partial subsidy
In relation to diesel, the rate of R$ 1.006 will work as a ceiling. Each unit of the Federation will be able to give a discount, subsidizing the fuel locally, until reaching the rate currently charged. According to Confaz, only Acre will not give any discount.
According to the National Committee of State and Federal District Finance Secretaries (Comsefaz), an auxiliary body of Confaz, the agreement prevented Complementary Law 192/2022 from resulting in an increase in the tax burden. Without the possibility for states to partially subsidize diesel, there would be a price increase in about half of the states and the Federal District.
Regarding other fuels, Comsefaz reported that the ICMS freeze reduced the state’s collection by about R$ 1 billion per month from November to February. As of March, losses will increase to R$ 1.15 billion per month.
