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Fernando Haddad Awaits President’s Approval to Suspend Federal Tax Exemption on Fuels Such as Gasoline and Ethanol

Written by Ruth Rodrigues
Published on 13/01/2023 at 12:51
Updated on 18/01/2023 at 20:14
A medida de prorrogação da isenção dos tributos federais sobre a gasolina e o etanol foi tomada em um dos primeiros atos do Governo Lula. O ministro Fernando Haddad aguarda o sinal verde do presidente para suspender a isenção como forma de arrecadação monetária.
Foto: Breno Esaki/Especial Metrópoles
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The Measure to Extend the Exemption of Federal Taxes on Gasoline and Ethanol Was Taken in One of the First Acts of the Lula Administration. Minister Fernando Haddad Awaits the Green Light from the President to Suspend the Exemption as a Means of Revenue Collection.

After the events held in Brasília last Sunday (01/08), the Lula Administration is working to maintain the agenda and continue with the progress of the projects for the month of January. Among them is the discussion about the end of the exemption on the collection of federal taxes on ethanol and gasoline, after the extension of the exemption until the end of February. The Minister of Finance, Fernando Haddad, is only waiting for the green light from the president to move forward with the action.

The End of the Exemption of Federal Taxes on Gasoline and Ethanol Is Expected in the Coming Months as a Measure to Minimize the Deficit of the Public Treasury

After eliminating federal taxes (PIS/Cofins) and the measure having been extended by President Lula until the end of February in one of his first acts in the current government, Minister of Finance Fernando Haddad continues to prepare for the end of the exemption.

Currently, according to the minister himself, he is only waiting for the green light from the head of the executive to prepare the suspension of the exemption as early as March.

The Ministry of Finance hopes to minimize the deficit of the federal treasury through revenue collected after the resumption of the collection of federal taxes on these fuels.

Although the exemption on gasoline and ethanol is expected to end in March, Haddad and the Lula Administration cannot yet decide this for other fuels.

Among them are diesel, cooking gas, biodiesel, and GLP, products considered sensitive regarding the resumption of federal tax collection.

Thus, Lula extended the exemption of these taxes until December 31. In the case of diesel, the measure would also provoke dissatisfaction among truck drivers.

Although it is not the most accepted measure by the final consumer, the resumption of federal tax collection on gasoline and ethanol is one of the main measures to ensure revenue for the public treasury in this first year of the Lula Administration.

Lula Administration Aims to Continue with the Agenda of Projects and Announcements This Week After Attacks on Brasília, Confirms Haddad

The announcement regarding the next steps of the Lula Administration for the collection of federal taxes on gasoline and ethanol is expected to happen later this week.

The Minister of Finance continues with his actions and has already assigned some tasks to his secretaries regarding the project, even before the announcement.

After meeting with his team, Haddad met with the Minister of Planning and Budget, Simone Tebet. He then presented the first details to President Lula.

The president himself instructed the Minister of Finance to make the announcement later this week, in a move to empower and normalize the activities of the Lula Administration after the attacks in Brasília.

Haddad may face strong criticism regarding the resumption of federal tax collection on gasoline and ethanol in the coming days, but the measure is necessary at a time of economic instability in the government.

Ruth Rodrigues

Formada em Ciências Biológicas pela Universidade do Estado do Rio Grande do Norte (UERN), atua como redatora e divulgadora científica.

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