With an average reduction of R$ 1.75 in gasoline throughout Brazil, the drop in the collection of the Tax on the Circulation of Goods and Services (ICMS) on various products will have positive impacts on the economy, especially for micro-entrepreneurs, he reported today ( 19) the Minister of Mines and Energy, Adolfo Sachsida, in an interview with the program The Voice of Brazil.
An impacting aspect of the withdrawal of ICMS collection, especially for electricity, is that the measure will have great capacity to boost basic jobs in the Brazilian market, said the minister. According to Sachsida, there was great political articulation to bring what he classified as “relief” after a sequence of events that reverberated in the Brazilian economy.
“In 2019, we had the biggest environmental accident in the history of Brazil, the Brumadinho disaster. In 2020, the biggest pandemic in the history of humanity, which continued in 2021 – with the biggest water crisis in the history of Brazil. In 2022, the biggest troop movement since WWII. It is a very difficult environment internationally and nationally”, recalled Sachsida.
The minister also informed that there will be a significant discount on telecommunication services operated in Brazil. According to Adolfo Sachsida, the effects could be felt as of next month.
The minister thanked the National Congress for the feasibility of the ICMS laws, but criticized the way in which the states concentrated a significant part of the collection on certain taxes. “From an economic point of view, it is a mistake. Because the deadweight loss of the tax increases with the size of the taxation. When you raise certain taxes too much, like energy, you destroy jobs and production. We are moving on the right path”, he added.
