Senator Fernando Bezerra (MDB-PE) read his opinion, in this Thursdayon the project that establishes a maximum limit of 17% for the rate of the Tax on Circulation of Goods and Services (ICMS) that is levied on items such as fuel, energy and communications. The proposal will be analyzed by the parliamentarians in the next Mondaythursday (13).
“There are already some signs that, if this project meets the objectives expected of it, because this project has the capacity to reduce the IPCA by two percentage points by the end of the year. If that happens, if the project is effective, Brazil could to have inflation lower than the American inflation, after a long time throughout its history”, argued the senator.
Bezerra’s report maintains the main points established by the Chamber. Among the amendments presented by the senator is the provision that gives legal certainty to state managers. Thus, they will be able to reduce ICMS collection without violating the Fiscal Responsibility Law (LRF) and the Budget Guidelines Law (LDO). According to the regulation, a federative entity cannot give up a revenue without indicating a new source of collection to compensate.
Bezerra added to the text the reduction to zero of PIS/Cofins rates (including imports) on hydrated alcohol and anhydrous alcohol, in addition to gasoline – which was already included in the proposal approved by the Chamber. According to the parliamentarian, the combined measures will represent a waiver of approximately R$ 17 billion.
“As a result of the additional effort of the Union to reduce the price of fuels, we included in the project, via amendment, a determination to reduce to zero the rates of Cide-Combustíveis, of the Contribution to the Social Integration and Heritage Formation Programs of the Public Servant (PIS/Pasep) and the Contribution for Financing Social Security (Cofins) levied on gasoline, until December 31th 2022,” he explained.
The parliamentarian also stated that, in all, the federal government’s resignation should reach R$ 32 billion when including the zero rate of diesel and cooking gas – which has already reached R$ 14.9 billion.
The changes in the text, however, do not completely satisfy the governors since ICMS is the main source of revenue for the states. In the opinion of Décio Padilha, president of the National Committee of State and Federal District Finance Secretaries (Comsefaz), “in 2023 the states should become ungovernable if the PLP is approved the way it is”.
Bezerra countered the criticism and stated that “the bill will not be paid exclusively by the states.” “The sacrifice of these federative entities could not pass without the Union giving its counterpart. This is, in our opinion, the great contribution of the Senate to the proposal”.
“It is evident that doubts exist as to whether these benefits will reach the tip. We are not here setting prices”, said Bezerra. “It is evident that the repercussions of the Ukraine war persist. Russia is responsible for 25% of the diesel offered on the world market. It is evident that the prolongation of the war is putting pressure on oil prices, it is putting pressure on energy prices. And it is evident that at any time Petrobras will be able to make adjustments in fuels, but better with the lower rate, better with the lighter taxation,” he added.
