The Attorney General’s Office (AGU) sent to the Federal Supreme Court (STF), this Tuesday (12), a statement in which it rejects a proposal for an agreement made by the states to reach a consensus on the collection of the Tax on the Circulation of Goods and Services (ICMS), which is levied on fuels. In early July, Minister Gilmar Mendes, of the STF, gave the government of President Jair Bolsonaro (PL) five days to comment on the proposals.
The demonstration took place in action that calls for the suspension of all state laws that limited the ICMS rates charged on fuel. The states criticized the measures passed in Congress that changed the way in which ICMS was collected.
According to the approved text, a single fuel tax rate is established and the collection of tax on fuel, energy, communications and public transport is limited. Such a measure, according to the states, reduces the collection.
AGU proposed monitoring the effective impacts of Complementary Laws nº 192/2022 and nº 194/2022, over the next few months until the end of the 1st quarter of 2023.
According to the AGU, if it is found, on the one hand, that the excess collection of recent years is consistent, there will be no modulation or compensation on either side. On the other hand, if a relevant insufficiency of collection and possible weakening of public finances is detected, an Informative Report will be prepared to be attached to these records and sent to the Legislative Power for deliberation on the subject, ruling out, in any case, the possibility of additional compensation by the Union.
The states’ proposal has four items: ICMS calculation base on diesel calculated based on the average of the last 60 months; non-binding of the general ICMS rate with the principle of essential fuel; application from 2024 of rates on fuel supply operations higher than rates on operations in general; removal of the Tariff for Use of the Electric Energy Transmission System and the Tariff for the Use of the Electric Energy Distribution System from the ICMS calculation basis, until the conclusion of the judgment on the matter, in the Superior Court of Justice.
On June 28, states and the Union participated in a conciliation hearing called by Gilmar Mendes to seek an agreement on the ICMS issue.
The minister also stated that if, on the one hand, the constituent designed a highly decentralized fiscal framework in terms of taxes; on the other hand, it left in the hands of the Union, free from any revenue sharing, another type of tax: contributions, especially social contributions.
Gilmar also said that, given the urgency itself, the law seems to contain gaps or incompleteness, which demand legislative improvements. “It is to be congratulated that the National Congress, in the face of this worsening of fuel prices, with repercussions on inflation, in the same line as what has happened in several countries, has sought solutions that can mitigate the deleterious effects of this crisis of international proportion that are taking place. focus especially on the neediest Brazilians”.
Source: CNN Brasil
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