After announcing a Proposed Amendment to the Constitution (PEC) to make it possible to cut state taxes, the government of President Jair Bolsonaro (PL) is studying measures aimed at the profit of fuel distributors. The idea is to implement actions so that distributors do not increase results exceptionally in the short term, according to two sources familiar with the discussions.
The background is the fear that the Government’s legislative effort to approve the PEC will be in vain and, in the end, distributors will increase their profits and prevent consumers from feeling at the pump the decrease in fuel prices after the tax cut. , says a minister.
How this will happen is still under analysis, according to government officials. Presidential auxiliaries talk about actions through the National Petroleum Agency (ANP), the body that regulates the sector. Auxiliaries are still analyzing whether there would be room for a measure by the Executive itself, such as a decree that could guide the behavior of distributors at this moment.
A senior member of the government says that the concern is that the tax cut is not “lost”, as has been seen in the past. “The whole concern is how these people will absorb at the margin”, he says. The information has already reached companies in the field informally, according to an executive. They are already debating how to react.
Source: CNN Brasil
