Lira criticizes governors on fuel prices and demands Senate solution

The president of the Chamber of Deputies, Arthur Lira (PP-AL), took to social media this Sunday, 16, to criticize the position of governors in relation to fuel prices and affirm that charges on the subject need to be addressed to the Senate, chaired by Rodrigo Pacheco (PSD-MG). Lira accused state heads of demanding solutions now “targeting” the October elections and stressed that the Chamber approved in October a project to alleviate the effects of fuel increases, but that was stalled in the Senate.

“The Chamber dealt with the bill that mitigated the effects of fuel increases. Sent to the Senate, he became an ugly duckling and Geni from the market crowd”, began Lira in the publication, according to whom the measure was classified as “interventionist and electoral” by critics.

An ally of Bolsonaro, who usually classifies the Tax on the Circulation of Goods and Services (ICMS), charged by states, as the great villain of fuel prices, Lira said this Sunday that, last year, governors resisted reducing the tax. In October, the Chamber approved a project to change the incidence of ICMS on fuels and establish a fixed value per liter for the tax. At the time, in turn, there was already an understanding that the text would have little chance of advancing in the Senate due to the resistance of the States, which fear losing revenue with the proposal.

In response, at the end of that month, state chiefs announced the freezing of the ICMS value at the pump at gas stations, for a period of 90 days, which will end at the end of January. This Friday, the 14th, the National Committee of Secretaries of the Treasury (Comsefaz) confirmed that the freeze will end on the date originally planned by the group. The announcement was accompanied by a note from the governor of Piauí and coordinator of the National Forum of Governors, Wellington Dias, stating that the increases have only served to “increase Petrobras’ profits” and demanded a definitive solution for fuels through tax reform. .

“They could have pressed even last year,” Lira said on social media this Sunday. “Now, at the beginning of an election year, governors, with Wellington Dias at the helm, demand solutions from Congress. With the coffers of the states crammed with so much revenue and aiming for October, they decided it’s time to reduce the price”, said the president of the Chamber, asking that the charges be addressed to the Senate.

“They could have pressed even last year. That’s why I remember the governors’ resistance to reducing ICMS at the time. I also record that we did our part. Charges, go to the Senate”, concluded Lira.

According to the text approved by the Chamber, ICMS would be charged based on a fixed amount per liter – as in the case of federal taxes PIS, Cofins and Cide -, a model known as “ad rem”. It would replace the current charge, which uses a percentage of the sales price value (“ad valorem”).

The project was voted on under Lira’s presidency in an attempt to curb the rise in fuel prices, a topic that bothers Bolsonaro and has been reflected in Brazilian inflation, which ended 2021 at 10.06%, above the established target ceiling. by the National Monetary Council (CMN).

The theme also intensified the tug of war between Bolsonaro and governors, which evolved during the covid-19 pandemic, in the face of the president and state heads’ disagreement over how to deal with the pandemic.

The final price of fuel is composed of the amount charged by Petrobras at the refineries (linked to the price of a barrel of oil on the international market and to the exchange rate), plus federal (PIS/Pasep, Cofins and Cide) and state (ICMS) taxes, in addition to distribution and resale margins and the cost of biodiesel, in the case of diesel oil, and of ethanol, in gasoline.

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