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Thinking About Consumers, Government of Roraima Plans to Reduce the ICMS on Cooking Gas from 17% to 12%, Which May Be Eliminated Next Year
The Government of Roraima submitted this Thursday (16) to the Legislative Assembly of the State of Roraima (ALERR) the bill that reduces the ICMS on cooking gas, which is currently at 17%, to 12%, placing the product among the items in the basic basket. The announcement of the tax reduction was made by the Governor of Roraima, Antonio Denarium, on Wednesday (15) in Brasília. Cooking gas in Roraima currently costs, on average, R$ 120.
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Governor of Roraima Comments on the Reduction of ICMS
According to Denarium, the reduction that the government intends to make on the ICMS for cooking gas is something that has always been sensitive due to the situation the population is facing.
The reduction is of utmost importance at a time when inflation is constantly rising in the country and there are also significant price increases in various products, especially cooking gas, which has a major impact on all social classes, from the low-income population to businesses, restaurants, bars, and all those who need the product for preparing their food.
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Government of Roraima Plans to Eliminate ICMS on Cooking Gas in 2022
The Government of Roraima will present a proposal to the National Council of Tax Policy (Confaz) to eliminate the ICMS on cooking gas starting in 2022, considering that only this body has the power to authorize the exemption or reduction of the tax.
According to Marcos Jorge, state secretary of Finance, the proposal will be presented alongside that of the state of Rondônia, which is also interested in eliminating the ICMS on cooking gas. According to Jorge, the tax reduction or even exemption, if approved, will result in a significant impact on the revenues of the government of Roraima, but preliminary assessments and studies have already been conducted so that the state can cope with the tax losses.
The secretary further explains that, precisely because of this significant social impact, the State Government is preparing this reduction. According to Jorge, there will be a strong financial impact on the government, but the necessary measures are already being adopted to ensure that this loss is managed, in accordance with the Fiscal Responsibility Law.
Governments of Other States Interested in Reducing ICMS on Other Products
In addition to the significant increase in the price of cooking gas, gasoline was one of the products that also saw a substantial rise in recent months, reaching R$ 7 per liter in some regions. The government of RJ, to help consumers, is trying to negotiate a reduction in the ICMS so that fuel prices can decrease.
Governor Cláudio Castro asks that other sectors that impact the price of the product to consumers also contribute. With the highest ICMS in Brazil, RJ retains 34% of the amount paid by final consumers for fuels.
According to Castro, the tax accounts for 15% of the state’s revenue and there is no possibility that the government can eliminate the entire tax. If the taxes were eliminated, the price of fuels like gasoline, GNV, and ethanol could potentially be reduced by nearly half.
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