untitled design

Freezing ICMS is insufficient to resolve fuel discharge, says researcher

In an interview with CNN this Monday (1) Carla Ferreira, researcher at the Institute for Strategic Studies of Oil, Natural Gas and Biofuels (Ineep), said that fixing the ICMS (Tax on Circulation of Goods and Services) on fuels is insufficient to resolve the issue prices for consumers.

The tax freeze for 90 days was approved by the National Council of Finance Policy (Confaz) last Friday (29) and begins to apply this Monday across the country.

“The idea is to freeze the reference price for the application of the ICMS percentage rate. Therefore, the agreement imposes the freezing of the reference over the next 90 days. This type of measure may help to reduce the impact of the tax on fuel prices, [mas] it will be insufficient in resolving the issue of increases for consumers, precisely because the responsible for the increases is the parity and import price policy adopted by Petrobras’ current management”, explained Ferreira.

According to the surveyed, while international oil prices are rising and the exchange rate is devalued, Brazilians will continue to see pressure on domestic fuel prices. Thus, the impact of the ICMS freeze will be very low and will probably not reach the pump price.

The decision of Confaz, which is formed by the secretaries of Finance of the states and the Federal District, aims to try to hold fuel prices, at current values, until January 31, 2022.

Reference: CNN Brasil

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular