Senate President sent a letter to Confaz, body chaired by Minister Guedes, criticizing the measure
The Ministry of Economy released a note accusing the governors of not adopting the new tax rules for fuels, approved in Congress, which were intended to contain the prices of gasoline, ethanol and diesel.
The document was released to the press on Thursday afternoon (May 5, 2022). Here’s the intact (110 KB).
The project approved by Congress has zeroed PIS/Cofins rates on diesel and gas by the end of 2022. In the ministry’s view, state governments have managed to capture the full effect of reducing fuel taxes, canceling out a possible reduction.
report of Power 360 showed that state revenue reached the highest level in 23 years, driven by ICMS, a tax levied on fuel.
“In other words, the decision of the councilors of the states and the Federal District neutralized and emptied the objectives of the law”says the ministry led by Paulo Guedes.
The note is a response to the president of the Senate, Rodrigo Pacheco, who charged for the increase in prices, even with the law.
Here are the Ministry’s arguments:
- the state secretaries of Finance, Economy, Revenue and Taxation may call an extraordinary meeting of the Council, provided that it is approved by at least one third of the collegiate. Thus, the 347th extraordinary meeting, held on March 24, 2022, was convened by the state secretaries (and no by the Ministry of Economy);
- at that meeting, it was unanimously decided by the councilors of the States and the Federal District, the approval of the Agreement that created the single-phase regime in operations involving diesel, allowing, however, the discount by the states in order to maintain the amount charged of ICMS frozen since November 2021; and
- the approval of monophasia, in this way, led to the non-reduction of the ICMS tax to the final consumer in the potential value of up to R$ 0.30 per liter, which would be obtained if the average of the last 5 years were followed by the governors, as established by the art. 7 of Complementary Law No. 192, of March 11, 2022.
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