Attacking fuel prices with exemptions will be more expensive, says economist

In an interview with CNN this Monday (6), economist and researcher at FGV Samuel Pessôa commented on the proposal announced by President Jair Bolsonaro (PL) for the ICMS (Tax on the Circulation of Goods and Services) on fuels to be zeroed with compensation to the states for the loss with revenue, through a Proposed Amendment to the Constitution (PEC).

For the specialist, the solution conceived by the government is part of “public policies of exemption” that, according to Pessôa, “would be much more expensive and with a much smaller impact on well-being”.

The economist assesses which proposal may weigh on public debt, being a “macroeconomically relevant” variable. The researcher also assesses which measure can also interfere negatively in the results of the Brazilian GDP.

In addition, Pessôa commented on PLP 18/22, which considers essential goods and services related to fuel, electricity, communications and public transport. In this way, the project proposes to set a ceiling of 17% of the ICMS levied on these goods and services.

For the economist, the project “is an interference by the National Congress in the autonomy of states. Theoretically, this tax issue should be decided by the legislative assembly of each of them,” he said.

See more in the video above.

Source: CNN Brasil

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