The federal government decided to wait for the vote on the bill that deals with the change in the calculation of the Tax Under Circulation of Goods and Services (ICMS) on fuels to decide whether to implement a subsidy policy to avoid increases in gasoline and diesel prices. The decision was taken after a meeting at the Planalto Palace, on Tuesday (8).
According to ministers and advisors who participated in the meeting, with whom the CNN Brazil talked, the strategy at the moment is to focus on the complementary bill (PLP) 11, which deals with the change in the tax calculation, and is on the agenda of the Federal Senate for this Wednesday (9).
The assessment is that instituting a subsidy policy at this time may discourage government parliamentarians from voting in favor of the proposal, which has even had the support of opposition congressmen.
The proposal provides for a fixed rate of ICMS. According to government sources, the idea is to make it possible to pass the bill before any transfer to the consumer of the increase in the price of a barrel of oil, which is lagged in relation to both diesel and gasoline.
The ministers of the Economy, Paulo Guedes, of Mines and Energy, Bento Albuquerque, and of the Civil House, Ciro Nogueira, were at the meeting and evaluated the possibility of implementing a subsidy policy.
The strategy of strong electoral appeal is being designed to have an impact especially on the price of diesel. The announcement, however, will be left for after the definition by the National Congress on the ICMS project.
The political articulation defends the creation of a fund with dividends and royalties from Petrobras to reduce the impact of the rise in oil prices on fuel. For Guedes’ team, however, this subsidy, if created, should be short and temporary. The validity would be between a period of three to six months. The idea re-edits the model adopted in 2018 in the government of the then president, Michel Temer, to subsidize fuels.
Source: CNN Brasil
