ICMS ceiling can reduce inflation and interest, says author of the fuel bill

in interview to CNN This Tuesday (7), deputy Danilo Forte (União-CE), author of the PL in the Chamber of Deputies that establishes a ceiling of 17% for ICMS on fuel and other goods considered essential, said that the measure would reduce inflation and, consequently, the interest rate.

“There is already a study by the Ministry of Economy and the financial market that shows that, if we have the project in force from July, we are able to reduce IPCA inflation from 1.2 to 1.6 [ponto percentual] this year, which is also reflected in interest rates”, he declared.

“Therefore, this project can reduce inflation, interest rates, have economic growth and generate employment with income distribution. All this only helps Brazil,” she added.

The reduction of ICMS on fuels and energy would generate a lower collection for the states, which express disagreements with the measure as a result.

Deputy Danilo Forte said that the governors’ position “creates a turmoil in the debate, without any proposition that can minimize inflationary growth”.

“This story that there will be a lack of money for health and education is a fallacy, these areas have never received as much money as they do now”, said the congressman.

He compared resistance to the project with the same resistance faced during the implementation of Bolsa Família, and stressed that the opportunity to reduce taxes would make more money circulate in local economies.

“Everyone says that the tax burden in Brazil is very high, that they want to carry out a tax reform since the Constituent Assembly… now there is this very big wheezing on the part of the governors”, he pointed out.

“I remember a lot of that speech when Bolsa Família appeared, people saying that the money would run out, that it would disappear and Brazil would go bankrupt. The reverse happened. In three months, the collections of municipalities, states and the Union increased. I believe that with this measure taken by the government yesterday, this gives greater comfort for the vote to take place today, to fight inflation and high prices”, he concluded.

Source: CNN Brasil

You may also like

Ireland will welcome 52 students from Gaza
World
Flora

Ireland will welcome 52 students from Gaza

Fifty -two Gaza students will arrive in Ireland this week, taking advantage of university scholarships, Ireland Foreign Minister Simon Harris