ICMS is reduced to 18% in the state of Rio de Janeiro

The governor of Rio de Janeiro, Cláudio Castro, announced this Friday (1), the signing of a decree that drops the ICMS on gasoline in the state. With the measure, the rate of 32%, one of the highest in the country, drops to 18%. The expectation is that the liter of gasoline comes out R$ 1.19 cheaper at the pumps to consumers from next week. “Anyone who doesn’t have a Monday with a lower price will be fined,” Castro said.

Thus, as the average price of a liter of gasoline in the state is R$ 7.80, the promise is that it will reach R$ 6.61, which would be the biggest reduction in the state’s tax burden. Through the press, Castro sent a message to Petrobras. “It is not possible that we are making such an effort and Petrobras continues with the absurd profit. If the company continues to increase (fuel prices) I will increase the company’s taxation, thus decreasing their profit”, said the governor.

The decree that regulates the proposal was signed shortly after a press conference at Palácio Guanabara, the official seat of the government of the State of Rio de Janeiro, this morning. The forecast is that the publication will take place in an extra edition of the Official Gazette this Friday. However, a bill will also be sent to the Legislative Assembly of the State of Rio de Janeiro.

The government will also reduce ICMS on telecommunications and electricity. In state bills, for every R$ 100 in the electricity bill, there will be a discount of R$ 14.

To reach the new rate of 18%, the state believes that the annual collection must have a reduction of R$ 3.9 million reais. “The state government will be unpalatable. It will not accept that the money leaves the public coffers, education, health and infrastructure, and does not go into the consumer’s pocket”, said Castro. The Procon and the Specialized Consumer Police will help in the inspection.

The bulletin from the National Petroleum Agency (ANP) pointed out that the average price of gasoline in Brazil is R$7.39, below that sold in Rio, where the value at gas stations in the capital easily exceeds R$8.00. The high ICMS is pointed out as one of the factors that pushes the price up.

Last week, President Jair Bolsonaro sanctioned the project that limits the rate on fuel, electricity, public transport and communications to an average of 17% but vetoed compensation to the states.

This Thursday (30), the governments of the 26 states and the Federal District asked Minister Gilmar Mendes, of the Federal Supreme Court, to suspend an injunction by Minister André Mendonça on the taxation of ICMS on fuel. With the provisional decision, it will not be allowed to have 27 different ICMS rates.

In anticipation of these negotiations, the state of São Paulo, last Monday, reduced the ICMS on fuel from 25% to 18%. In Goiás, the 30% rate dropped to 17%