According To Minister Alexandre Padilha, The Exemption Of Federal Taxes On Gasoline And Alcohol Will Not Be Extended After It Ends On February 28

The Government Had Established the Provisional Measure (MP) for Tax Exemption on Gasoline and Alcohol and the Termination Happens on the Next Day 28 of February, After 60 Days of Validity. According to Statements by Padilha, Minister Head of the Secretariat of International Relations, There Is No Intention for the MP to Be Extended.

The issue of federal tax exemption on gasoline and alcohol was raised in a conversation with journalists during the inauguration of the Super Centro Carioca de Vacinação in Botafogo, Rio de Janeiro. As the deadline for the termination of the Provisional Measure approaches, the question reflects the thoughts of many Brazilians about the next steps of the government and was later justified by Padilha in the same statement.

Minister Alexandre Padilha Seized the Opportunity to Talk About Other Actions Developed to Help Poorer Families

When questioned, Padilha said that “At this moment, there is no discussion in the government about extending or changing these deadlines,” referring to the MP established in December 2022. With the approaching 60-day limit for the termination, it becomes increasingly unlikely to consider an extension, as the act would require prior planning, which does not seem to be the case.

However, the Minister also made a point to say that the debate regarding the federal tax exemption on gasoline and alcohol is not completely over.

For him, it is still possible that the topic is brought to the National Congress for a broader analysis of the effects it may have on the population.

In addition, Padilha also took the opportunity to remind that the rates of PIS/Pasep and Cofins, applicable to diesel, biodiesel, and liquefied petroleum gas (LPG), will remain zeroed until the end of 2023, on December 31.

The long-term decision was made as a way to ensure greater freedom for individuals and families in low-income conditions, who need to move around frequently.

The effect is also felt in other areas of life, such as the price of food, for example.

In his statement, Padilha asserts: “This measure has a greater impact on poorer families, on food inflation, and throughout the production chain,” reinforcing that, despite the termination of the MP, scheduled to occur in February, other actions in parallel continue to happen to promote the well-being of Brazilians.

Padilha Talks About Moves Made by Other Ministers of the Government to Build Solutions for Citizens Regarding the Finalization of the MP on Gasoline and Alcohol

Continuing his speech, Padilha also mentioned the Minister of Finance of the Lula government, Fernando Haddad, and his efforts to build an agreement regarding the ICMS, the Tax on Circulation of Goods and Services.

The mission involves discussions with the leaders of each state in Brazil regarding the law passed in Congress, which reduces the rate to 17%, since last year, resulting in commercial consequences, such as the revenue of each state.

For Padilha, Haddad’s action is a way to build a solution for Brazilians and is already being developed by the Minister of Finance.

The process may be slow, considering it requires multiple negotiations in each part of the country, but aims to balance the well-being of society and maintain the market on a growth trajectory at the same time.

The extension of the federal tax exemption on gasoline and alcohol would be a move that could contribute to this same intent, after the end of the Provisional Measure, but Padilha was emphatic in stating that the government still has no plans to ratify this decision. Therefore, it is expected that it expires by February 28.