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New Fixed Gasoline Tax Value Will Take Effect As Of June 1, Thursday, And May “Disrupt” Fuel Prices, Increasing In Some States And Decreasing In Others, Check It Out
Brazil is about to undergo a significant change in the fuel sector with the implementation of a single Tax on Circulation of Goods and Services (ICMS). Starting on the 1st of next month, Thursday, the fixed value of R$ 1.22 per liter of gasoline will be charged across the country. This measure, however, will have different effects on gasoline prices in each state, resulting in significant increases in some and decreases in others, according to the Auto Esporte website.
The main reason behind this disparity is the current difference in ICMS rates throughout Brazil. Currently, the gasoline tax varies by state, which means that prices at gas stations are affected by this variation. With the introduction of the single ICMS, states with rates lower than R$ 1.22 will see an increase in gasoline prices, while those with rates above this value will experience a reduction.
The push for a single ICMS was driven by the states, which seek to compensate for losses in revenue due to the exemption of fuels. It is estimated that they expect to receive a transfer of R$ 26.9 billion by 2026 to balance their finances.
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Fixed ICMS: How Will Gasoline Prices Behave With Tax Change?
This change in the gasoline tax has been a cause of concern for consumers. According to recent surveys, the average price of gasoline in Brazil is approximately R$ 5.26 per liter. With the single ICMS, it is expected that the price of gasoline will increase in some states, potentially reaching up to R$ 0.29 more per liter. On the other hand, in states with higher rates, the reduction could reach up to R$ 0.12 per liter.
This measure has generated debates and discussions about its impact on the economy and consumers’ wallets. Furthermore, there are concerns about the possibility of abusive gasoline price increases by gas stations taking advantage of the change in gasoline taxes.
In light of this scenario, it is important for consumers to stay alert to the prices charged at gas stations in their states and seek alternatives to deal with potential increases. Additionally, it is essential for there to be transparency and oversight by the competent authorities to ensure that gas stations do not take advantage of the situation to harm consumers.
Change In Gasoline Tax Is Considered Of Great Impact In Brazil
The single ICMS is a significant change in the country’s tax system, and its impact will be felt differently in each region. Therefore, it is essential to closely monitor updates and information on the subject to understand how this measure will affect gasoline prices and consumers’ finances in the coming months.
This change in the ICMS comes after a year in which the tax had a ceiling of 18% and percentage increases in recent weeks. The fixed ICMS was established through an agreement among the states, the Federal District, and Ministers Gilmar Mendes and André Mendonça of the Supreme Federal Court (STF). It is important to note that the initially proposed value for the tax was R$ 1.45, but after further discussions on the matter, it was reduced to R$ 1.22.
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