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Congress negotiates with government and “trigger” states to enable approval of the Fuel Bill

Congress is negotiating with the government and states the inclusion of a “trigger” in the bill that imposes a ceiling of 17% on the ICMS on energy and fuels. Through negotiation, the device would be activated if there was a drop in state collections and the Union would provide resources to compensate for the tax reduction.

Protection for the agribusiness sector is also being evaluated. According to the Ministry of Economy, which is against the creation of the trigger, there is an articulation so that the proposal does not progress.

The government leader in the Chamber, Ricardo Barros (PP-PR), confirmed the negotiation. According to him, states that are undergoing fiscal recovery, such as Rio de Janeiro and Goiás, requested the device because their contracts with the Union prevent a decrease in collection. Since then, the idea has been proposed for all states.

“States in fiscal recovery asked for this caveat (trigger) because the contract prevents the reduction of revenue and the other states asked for a trigger in the event of a large loss of revenue,” Barros told CNN. He also informed that protection for the sugar-alcohol sector is being negotiated. “Ethanol may have protection. There will be a way for the price of ethanol not to lose competitiveness with gasoline,” he added.

Barros also said that the rapporteur of the proposal, Elmar Nascimento (UB-BA), should make the changes in a text to be analyzed by the Economy and the states. “After the rapporteur has written a text, the government will be consulted,” he said.

However, the information has already reached the government through the new minister of Mines and Energy, Adolfo Sachsida. He met this morning with the opposition and at lunch with leaders from the base to negotiate the approval of the proposal. Economy Minister Paulo Guedes is in Davos for the World Economic Forum.

The author of the proposal, Danilo Forte, told CNN that the Chamber is already waiting for a signal from the Economy about a possible new wording of the text. “The idea in practice is that, if there is an abrupt drop in revenue, the Union would provide assistance to the states”.

Source: CNN Brasil

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