Governors defend two models of compensation for ICMS losses on fuels

The proposal to reduce the tax on the circulation of goods and services (ICMS) on fuel continues without an agreement with the States. After a meeting with the president of the Senate, Rodrigo Pacheco (PSD-MG), governors were not satisfied with the government’s idea of ​​tax compensation.

According to the Complementary Law Project (PLP) 18/22, already approved in the Chamber, the compensation by the federal government would be through the reduction of the debts of the states with the Union in case of a fall of more than 5% in the collection.

“We are in the middle of the fiscal year. It is natural that if this [redução do ICMS] occurs, we need to change the fiscal responsibility law so that mayors and governors do not incur acts of improbity. Second point, the necessary compensation for us to maintain the principle of good fiscal management,” said the governor of São Paulo, Rodrigo Garcia.

However, a new proposal was made by the States so that there are two models of compensation: the first model would be to suspend the payment of debt of states that have debts with the Union for a period to be calculated by each government, which is the case of 22 States.

Garcia gave an example of São Paulo, which would require a two-year debt suspension period, which currently stands at R$25 billion per year. “Suspension. Because? That goes to the debt stock. This is the best way for you to maintain a Brazilian tax, but you suspend the payment and throw it into the stock,” added the governor of São Paulo.

The second model addressed is compensation with Petrobras’ dividend resources, which would serve debt-free states, only five of which are. In the proposal, Petrobras’ prices are controlled with a direct subsidy, transparent in the budget with profit that comes in.

For the governor of Bahia, Rui Costa (PT), there will be a loss of resources in health and education if there is no compensation from Petrobras in the reduction of taxes.

“We are taking money from health and education to further increase the extraordinary profit. Oil importers have never made so much money in Brazil. Gas station owner never made so much money. Petrobras has never made so much money. So, what we are warning about is that the objective, which is commendable, of reducing the price, will not be achieved and will cause a major fiscal crisis in municipalities and states,” he added.

The rapporteur of the proposal, Senator Fernando Bezerra Coelho (MDB/PE), has a meeting this Wednesday (8) with the State Finance Secretaries and with the Chamber to align a new text of the complementary bill as the PEC of Fuels. The idea is to present the text later this week.