Fernando Molica: A serious tax reform needs to be discussed in Brazil

In this Monday’s Freedom of Opinion (17), Fernando Molica analyzed the dispute over the ICMS (Tax on the Circulation of Goods and Services) on fuels.

Last Friday (14), most governors decided to unfreeze ICMS on this product. The governor of Piauí, Wellington Dias (PT), president of the National Forum of Governors, told CNN that states decided to resume charging ICMS on fuel after assessing that the tax has not been responsible for the rise in prices at gas stations.

The governor of Piauí also stated that the proposal approved in the Chamber of Deputies to change the calculation of ICMS on fuel does not resolve the rise in prices and “generates an imbalance”.

For Fernado Molica, the ICMS rate on fuels in Brazil has always been high and the impact on prices is nothing new.

“ICMS about fuel no Brasil It’s high, but it was always high. THE oil price is changing, but has been rising a lot, and this rise in international prices coincided with thestop do dollar. Ouch When you apply to aliquot of ICMS, this increases a lot, but the aliquots already were applied there ago, that’s what the governors allege,” he explained.

The commentator of CNN assessed that, in addition to the situation regarding ICMS on fuels, the discussion should be broader, and involve the way in which taxation takes place in Brazil.

“By the time the fuel increases a lot, the federal government specializes in looking at a tree, not Forest, and point out that the culprits are the governors, and forget about a larger discussion, which is to reform tax, discuss taxes in Brazil. Consumption tax is very unfair, because snake the same rich and poor thing.”

“Tax has to be progressive. When you taxa more income than consumption you have a justice tax. And we have tax about consumption, rich and poor pay the same tax. Heyimportant to discuss one reform tax would be“, added Molica.

The Freedom of Opinion had the participation of Fernando Molica e Boris Casey. The painting airs daily on CNN.

The opinions expressed in this publication do not necessarily reflect the position of the CNN or its employees.