Rodrigo Pacheco, Senate President, Chooses Rapporteur for Fuel ICMS Proposal

Senate President Chooses Reporter for Bill That Will Limit ICMS

Rodrigo Pacheco, Senate President, has appointed Senator Fernando Bezerra as the reporter for Complementary Law Project (PLP) 18/2022. Simply put, the bill limits the Tax on Circulation of Goods and Services (ICMS) applied to goods and services related to fuels, natural gas, electricity, communications, and public transportation. The proposal that limits the ICMS was approved in the Chamber of Deputies on May 26.

The decision to appoint Fernando Bezerra was made after a meeting with finance secretaries, which took place on Monday, the 30th. The secretaries made it clear that they are very concerned about the significant loss of revenue that states and municipalities will suffer if the proposal is approved. Another project the Senate will analyze concerns the limitation of taxation on essential goods, such as energy, oil, telecommunications, and gas.

Senate Should Not Stall the Bill 

“The secretaries, logically, have considerations regarding these proposed projects. We, by the profile of the Senate, have an obligation to give the state finance secretaries this opportunity for their considerations, suggestions, and potential improvement of the text. But there is a commitment to schedule these projects that came from the Chamber in the Senate,” said Rodrigo Pacheco in reference to the request from Arthur Lira, President of the Chamber of Deputies, for the projects not to stay stalled in the Senate.

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Senate Will Consider ICMS Proposal on Fuels 

According to Agência Brasil, Senator Fernando Bezerra Coelho (MDB-PE), now the reporter for PLP 18/2022, will participate in the first meeting with the secretaries already this Tuesday, the 31st. The meeting will serve for the secretaries to explain in detail their concerns regarding the progress of the project.

Rodrigo Pacheco emphasized that the Senate should not take long to bring the matter to the floor. “This is the beginning of this dialogue, which will not last long. We will seek very quickly to have a definition from the Senate regarding this project,” said the Senate President.

States Work to Prevent Approval of the Bill 

In an attempt to avoid the limitation of ICMS, the states indicated to the federal Senate a retreat on the subject. The National Committee of Finance, Tax, or Revenue Secretaries of the States and the Federal District, the Comsefaz, indicated to Rodrigo Pacheco that the states are willing to freeze the ICMS for fuels until the end of the year. Additionally, the moving average of the ICMS for the last 60 months would be applied. This measure would provide more predictability for consumers.

“We want to give up the conviction that we apply the law approved by Congress and make a constructive gesture. We indicated in today’s meeting that the states are willing to review the points and debate already tomorrow at Confaz (Council of Finance Secretaries) the issue of applying the moving average. This improves the environment, we progress, and stop reiterating a position. We are saying ‘it’s okay if you think you are right, we won’t keep marking a technical position’. This is a gesture,” said Délcio Padilha, president of the Comsefaz, to CNN Brasil.