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Confaz reiterates decision and approves freezing of ICMS on fuels for another 60 days

Written by Roberta Souza
Published 31/01/2022 às 09:35
Fuels - ICMS - Confaz
Photo: Reproduction Google Images /Poder360

Unanimously, Confaz approves the increase in the freezing period of ICMS on fuels

The National Finance Policy Committee (Confaz) legitimized, on 27/01, the increase in the deadline for freezing fuel prices for calculating the Tax on Circulation of Goods and Services (ICMS) until 31/03.

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Confaz's decision was unanimous before the 27 state secretaries of Finance and the Federal District, extending by 60 days the freezing of the weighted average price to the final consumer (PMPF) of ICMS on fuels.

In a note from the National Committee of Secretaries of Finance, Finance, Revenue or Taxation of the States and the Federal District (Comsefaz), it was informed that the freezing of the PMPF, the basis for calculating ICMS on fuels, was decided by Confaz in October 2021, with Valid for 31/01. The last decision, however, fixed the current PMPF for another 60 days.

On 26/01, the Governors' Forum published a note advising the approval of the freezing of the PMPF as a temporary action to help control fuel increases. However, the governors defend the creation of structural solutions to make fuel prices stable.

According to Comsefaz, the decision aims to show the willingness of the states to repress fuel readjustments.

price difference

Comsefaz stressed that the finance secretaries believe that just freezing the ICMS is not enough to prevent readjustments in fuel. According to the Brazilian Infrastructure Center (CBIE), in the most recent update of average fuel values, the difference in diesel and gasoline prices in the domestic market in relation to the US is, respectively, 9,2% and 13%.

In addition, the entity stated that it is in favor of the creation of the equalization fund as a method of preventing the readjustments of the barrel of oil in the foreign market from being passed on to the final price, causing common increases.

Furthermore, it was informed that fuel readjustments will only be controlled when the deregulation created by Petrobras' price policy change ends or with the approval of the tax reform of PEC 110/2019, which is ready for a vote in the Senate.

Murilo Viana, specialist in public accounts and tax consultant, reinforced that, as Petrobras stopped readjustments in December, the result of the freeze for the calculation of ICMS was minimal and did not affect consumers. “The freeze announced in October had a limited effect in practice, because there were no readjustments by Petrobras and there was even a price reduction,” said Murilo.

The PEC that the president guarantees to end fuel taxes has little chance of producing results for the consumer and even having an opposite effect on inflation due to the growth of the gap in public accounts.

According to Viana, in the federal context alone, with the end of PIS-Cofins and the Contribution for Intervention in the Economic Domain (Cide) on fuels, there will be an impact on public accounts of almost R$ 70 billion a year and, if all states ended up with the ICMS, the embezzlement in the accounts of governors would be R$ 240 billion. He considers that inflation and fuel are issues that bother Bolsonaro, who is looking for a solution during an election year, while the governors “sought to put a damper on the subject by extending the ICMS freeze, since many are also in the electoral race.

The weight of taxes in the PMPF per liter of gasoline, for example, varies from R$ 2 to R$ 3, according to Fecombustíveis. For Viana, this PEC represents a “anything goes by the government in an election campaign”, warning that it goes against the Constitution, as it even affects the revenue of municipalities. Source: Rosana Hessel for Correio Braziliense.

Roberta Souza

Petroleum Engineer, postgraduate in Commissioning of Industrial Units, specialist in Industrial Corrosion. Get in touch to suggest an agenda, advertise job vacancies or advertise on our portal. We do not receive resumes

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