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The Government plans to increase the price of gasoline for the beginning of March, according to information from the Federal Revenue

Written by Bruno Teles
Published 24/02/2023 às 14:58
Updated 17/03/2023 às 14:23
gasoline reeneration
Recharge of gasoline (Photo/disclosure)

The federal government released the reencumbrance of gasoline from March 2021, according to the Provisional Measure (MP) edited earlier this year. The information was confirmed on Thursday (23) by the head of the Federal Revenue Service's Center for Tax and Customs Studies, Claudemir Malaquias, during a press conference following the disclosure of the January collection.

Malaquias also explained that the exemption on gasoline and ethanol would remain in force until the end of this month, while the exemption on diesel would extend until the end of the year. Regarding the “ninth” rule for reinstatement of gasoline, he said it was a legal question to which there would be no immediate answer.

Fuel exemption was one of the main points of the MP published by the Bolsonaro government in 2020, when product prices reached the highest level in history. Once in effect, it guaranteed significant discounts when refueling motor vehicles.

According to experts, the positive consequences of this measure were felt by all Brazilians who own motor vehicles. According to them, in addition to the direct benefits at the time of supply, there was also a reduction in logistical costs for several companies in the country.

As a result, the entire Brazilian economy benefited: sectors that depend directly or indirectly on transport now have the predictability to carry out their investments and better plan their operations.

Federal fuel tax charges back in March, revenue says

Via CNN Brazil 

Against this favorable background, the Ministry of Economy promise to keep reinstatement of gasoline indefinitely. Thus, drivers will be able to continue counting on lower prices to fuel their vehicles without losing current financial conditions.

Malaquias, head of the Federal Revenue's Center for Tax and Customs Studies, recently commented on the reencumbrance proposal of gasoline: 'it's a matter of economic policy, not tax collection'. The record in January 2023 collection was questioned in relation to the reencumbrance proposal.

The Secretariat for Economic Policy (SPE) established new macroeconomic parameters for 2023, which include factors such as the external scenario, price indices, interest rates, credit and debt. These parameters will serve as the basis for the IRS projections.

Malachi's Opinion on the reinstatement of gasoline has been a widely discussed topic in recent months. In an environment marked by changes in the world economy, experts have highlighted the importance of economic policy to ensure fiscal balance. The debate is especially relevant now that the price correction of oil derivatives is being considered as a strategic measure to achieve this goal. 

Through this initiative, the government aims to achieve several goals: increase domestic consumption, lower the cost of fuel in the domestic market and encourage investments in infrastructure. However, there is still some resistance from the population due to the possibility of an increase in the tax burden.

Therefore, analysts consider that other measures would be necessary to achieve the desired objectives. For example, measures that encourage people to adopt more sustainable production and consumption practices. This would make it possible to minimize the negative side effects of fuel recharging on the environment and would contribute to significantly reducing greenhouse gas emissions. 

In general, there are positive and negative points involved in the discussion about the reinstatement of gasoline. However, it is important to take into account that the final decision will depend on the detailed assessment of these various factors by the Brazilian government. The Federal Revenue will continue to monitor the behavior of fuel prices in the international market to assess their impacts on the Brazilian economy.

Bruno Teles

I talk about technology, innovation, oil and gas. I update daily about opportunities in the Brazilian market. With more than 2.300 articles published in CPG. Agenda suggestion? Send it to brunotelesredator@gmail.com

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