Members of the economic team told the CNN that the government prepares a proposal that aims to finance the reduction of ICMS on fuels and energy charged by the states.
The idea is that it be presented through a constitutional amendment and that provides for the allocation of extra revenues that are not in the Budget, such as resources from the privatization of Eletrobras and extraordinary dividends from Petrobras. It is estimated that R$ 20 billion will be allocated to the proposal.
Under the mechanism, states would need to reduce ICMS rates to below the 17% provided for in the proposal approved by the House and under discussion in the Senate.
The government would then “finance” this reduction for a limited period, currently set at six months. There is even expectation that the rates can be zeroed in this process.
The option for a proposal for a constitutional amendment, which, according to economic sources, would already be ready, is to protect itself from electoral and fiscal legislation.
In addition, according to the source, the reading at Palácio do Planalto is that it would be a way of signaling to the states within the negotiation around the project under debate in the Senate that establishes a ceiling on the ICMS rate.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
