CNM Highlights That Setting ICMS As A Way to Reduce Fuel and Energy Prices May Cause Losses of 15 Billion to Municipalities

Written by Fabio Lucas Carvalho

Published on 22/05/2022 at 14:14

Foto: Marcello Casal jr/Agência Brasil

Seja o primeiro a reagir!

A Bill That Aims to Set ICMS in the Country Is Quite Controversial and Has Been Generating a Lot of Debates. The CNM Highlights the Risk of Municipalities Losing Revenues If Approved

Last Thursday, Arthur Lira, the President of the Chamber of Deputies, stated that he would put to vote on next Tuesday, the 24th, the bill that classifies fuels, electricity, telecommunications, and transportation as essential goods and services. This means that the ICMS rate will be capped at 17%.

Even with Brazil suffering greatly from the prices of fuels and electricity bills, the measure aimed at limiting ICMS is quite controversial, generating many debates on the topic in recent weeks.

The CNM (National Confederation of Municipalities) released a note strongly criticizing the bill. The official note criticizes and warns about the consequences of a potential approval of the project. According to the entity, if approved, the project could cause a loss of 15 billion to municipalities.

ARTICLE CONTINUES BELOW

Limiting ICMS Is Not the Only Alternative

Paulo Ziulkoski, President of the CNM, admitted that the ICMS rate charged to Brazilians is indeed high; however, there are other solutions with less impact than approving the bill.

“There are other solutions that can be adopted by the authorities and the National Congress, as this project proposes once again to take resources away from States and Municipalities, significantly harming the provision of services to the population… It is argued that instead of this measure, there should be an increase in taxes on oil companies, which today are the ones making the highest profits and can bear these costs for the benefit of our society,” he said.

Understand All the Controversy Surrounding ICMS

The STF, Federal Supreme Court, decided last year that any ICMS charge above 17% on the supply of electricity and telecommunications services is unconstitutional. Even after the Supreme Court’s decision, data from Aneel (National Electric Energy Agency) shows that, on average, 21.3% of the electricity bill is represented by ICMS.

The high price of fuels is one of the main reasons for high inflation in the country. Due to the price of oil in the international market and rising inflation, this number has been continuously increasing in recent months.

CNM Highlights That Setting ICMS As A Way to Reduce Fuel and Energy Prices May Cause Losses of 15 Billion to Municipalities

A Bill That Aims to Set ICMS in the Country Is Quite Controversial and Has Been Generating a Lot of Debates. The CNM Highlights the Risk of Municipalities Losing Revenues If Approved

Limiting ICMS Is Not the Only Alternative

Understand All the Controversy Surrounding ICMS

At just 14 years old, a boy creates a system without energy, using steel pipes buried in the ground, that irrigates seedlings with moisture from the air, to combat the water scarcity threatening reforestation in northern China.

Where there was only sand and wind at 40 degrees, China built a megacity of 500,000 inhabitants with farms, wineries, and universities in the middle of the desert using melted glacier water from hundreds of kilometers away.

At over 8,800 meters above sea level, the summit of Mount Everest is made up of rocks that originated at the bottom of an ocean about 500 million years ago and were pushed to the highest point on Earth by the collision of tectonic plates.

A couple builds a system to bring water from the spring to their land, climbs a hill with materials on their backs, and creates a simple, cheap, and sustainable solution to ensure their own water supply.

The end of total solar eclipses has a deadline: the Moon is moving away from the Earth at about 3.8 cm per year, and in approximately 600 million years, it will no longer completely cover the Sun, ending one of the rarest coincidences in the Solar System.

With 40% of all the gold on the planet buried in a single geological basin that is 2.7 billion years old in South Africa, the Witwatersrand still hides R$ 3 trillion in unreachable reserves.

In the depths of the African forest, these rare and terrifying native species dominate rivers, swamps, and treetops with venom, brute strength, lethal teeth, and behaviors that seem impossible in the heart of the wild.

He sold his share for R$ 4 thousand, saw the company become a giant worth R$ 19 trillion, and missed the opportunity of a lifetime.

Elon Musk’s Starship megafrocket puts $8 billion at risk, raises alarms in the market, and could affect technology, mining, and space internet startups in the coming years.

A Brazilian millionaire couple restores a farm over 150 years old in the interior of São Paulo and transforms the historic property with Portuguese tiles, antique furniture, and new spaces into a refuge that blends tradition, comfort, and sophistication.

Submerged city in a lake in Minas reveals intact streets, preserved vehicles, and houses after more than 60 years, impressing divers.

Yellowstone has started to rise again in an area of the caldera, and the movement rekindles fears surrounding the U.S. supervolcano, as scientists monitor the deformation and try to understand what is happening underground.

CNM Highlights That Setting ICMS As A Way to Reduce Fuel and Energy Prices May Cause Losses of 15 Billion to Municipalities

A Bill That Aims to Set ICMS in the Country Is Quite Controversial and Has Been Generating a Lot of Debates. The CNM Highlights the Risk of Municipalities Losing Revenues If Approved

Limiting ICMS Is Not the Only Alternative

Understand All the Controversy Surrounding ICMS

At just 14 years old, a boy creates a system without energy, using steel pipes buried in the ground, that irrigates seedlings with moisture from the air, to combat the water scarcity threatening reforestation in northern China.

Where there was only sand and wind at 40 degrees, China built a megacity of 500,000 inhabitants with farms, wineries, and universities in the middle of the desert using melted glacier water from hundreds of kilometers away.

At over 8,800 meters above sea level, the summit of Mount Everest is made up of rocks that originated at the bottom of an ocean about 500 million years ago and were pushed to the highest point on Earth by the collision of tectonic plates.

A couple builds a system to bring water from the spring to their land, climbs a hill with materials on their backs, and creates a simple, cheap, and sustainable solution to ensure their own water supply.

The end of total solar eclipses has a deadline: the Moon is moving away from the Earth at about 3.8 cm per year, and in approximately 600 million years, it will no longer completely cover the Sun, ending one of the rarest coincidences in the Solar System.

With 40% of all the gold on the planet buried in a single geological basin that is 2.7 billion years old in South Africa, the Witwatersrand still hides R$ 3 trillion in unreachable reserves.

In the depths of the African forest, these rare and terrifying native species dominate rivers, swamps, and treetops with venom, brute strength, lethal teeth, and behaviors that seem impossible in the heart of the wild.

He sold his share for R$ 4 thousand, saw the company become a giant worth R$ 19 trillion, and missed the opportunity of a lifetime.

Elon Musk’s Starship megafrocket puts $8 billion at risk, raises alarms in the market, and could affect technology, mining, and space internet startups in the coming years.

Airfare prices may rise with increasing fuel costs, and the government is considering urgent measures to avoid a direct impact on the wallets of Brazilians.

Chocolate prices soar nearly 15% and become a luxury item for Easter 2026, with increases surpassing inflation and changes in Brazilian consumption habits.

The Federal Revenue issues a good alert for Brazilian taxpayers: 60.9% are already using the pre-filled tax return, automatic refunds via Pix reach millions, and the government plans for a fully automated income tax in the coming years.

He sold his share for R$ 4 thousand, saw the company become a giant worth R$ 19 trillion, and missed the opportunity of a lifetime.

Elon Musk’s Starship megafrocket puts $8 billion at risk, raises alarms in the market, and could affect technology, mining, and space internet startups in the coming years.

A Brazilian millionaire couple restores a farm over 150 years old in the interior of São Paulo and transforms the historic property with Portuguese tiles, antique furniture, and new spaces into a refuge that blends tradition, comfort, and sophistication.

Submerged city in a lake in Minas reveals intact streets, preserved vehicles, and houses after more than 60 years, impressing divers.

Yellowstone has started to rise again in an area of the caldera, and the movement rekindles fears surrounding the U.S. supervolcano, as scientists monitor the deformation and try to understand what is happening underground.