The Government of the State of São Paulo announced, on Saturday (2), the reduction of the ICMS (Tax on the Circulation of Goods and Provision of Services) on the commercialization of cooking gas (LPG).
The value of the tax levied on the 13 kg cylinder drops from R$ 13.30 to R$ 9.92, according to the state government.
The decision should represent a drop of R$ 3.38 in the average price per 13 kg cylinder, if the entire reduction is passed on by the distributors in the sale to the final consumer, according to Palácio dos Bandeirantes.
The Government of São Paulo added that the impact on ICMS revenue will reach R$ 853 million in annualized values.
SP reduces ICMS on fuel to 18% and projects a drop of R$ 0.48 per liter at gas stations
The Government of the State of São Paulo announced, last Monday (27), a reduction in the ICMS rate on fuel, from 25% to 18%, predicting a drop of about 48 cents in the value of a liter at gas stations.
The governor of São Paulo, Rodrigo Garcia (PSDB), said that the measure was implemented immediately after the presidential sanction of the law that limits the collection of state tax on fuel, electricity, communications and public transport.
“If today the average price in the state is R$ 6.97 a liter of gasoline, it has to be around R$ 6.50 lower with this measure”, he said.
In a press conference, he stated that this is a “contribution” by the state to the reduction of prices, but considered that the state tax “is not the villain” of the fuel boom.
SP is the 1st state to reduce the ICMS on gasoline. Valid from today. Now it’s Petrobras’ turn to do its part. @petrobrasdo your part, now.
— Rodrigo Garcia (@rodrigogarcia_) June 27, 2022
“We cannot camouflage reality, ICMS is not and has never been the villain of fuel prices in this country, we have a price policy that belongs to Petrobras, which is national”, said Garcia.
“We know that we have a problem in the macroeconomy, in the policy of international oil prices and also in Petrobras, which earns a lot and gives little to the population of this country,” he added.
The governor demanded measures from the federal and state governments so that there are no further increases in fuel prices in the coming weeks. “We hope that Petrobras will do its part,” he said.
Also according to the governor, Procon will monitor the measure and disclose gasoline prices at stations in São Paulo.
The Secretary of Finance and Planning of the São Paulo government, Felipe Salto, said that the rate cut will mean a reduction in the collection of 4.4 billion reais, in annualized terms, considering only gasoline.
Source: CNN Brasil
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