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

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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.

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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

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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

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Four times faster than the Concorde, capable of taking passengers from New York to London in less than an hour at Mach 5.5, and with an engine that switches from turbojet to ramjet mid-flight at Mach 3.5, the Hermeus Quarterhorse went from paper to its first flight in just 19 months.

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