The Minister of Mines and Energy, Adolfo Sachsida, said in a post on Twitter that, “by determination of the new government, we will not be able to issue a Provisional Measure extending the exemption from PIS and Cofins on fuels”.
The future Minister of Finance, Fernando Haddad, asked the current government’s economic team not to extend the exemption of federal taxes on fuels, such as gasoline, ethanol and diesel.
The exemptions, announced throughout 2022 by the Bolsonaro government to circumvent high inflation, are valid until Saturday (31).
“The Lula government opted for the price of gasoline, diesel and ethanol to increase on January 1st. Gasoline has the potential to increase R$ 0.69, diesel, R$ 0.33 and ethanol, R$ 0.24 right away”, said the minister.
Gasoline, diesel and ethanol prices will INCREASE from January onwards by choice of the new government. The PT government chose not to extend the exemption of federal taxes on fuels. Result: starting in January, gasoline will increase by approximately R$0.69 and diesel by R$0.33 pic.twitter.com/5EPGcZfrDZ
— Adolfo Sachsida (@ASachsida) December 28, 2022
With the exemption from federal taxes, the Union stops collecting about R$ 53 billion per year, according to calculations by the economic team.
In the expectation of Ativa Investimentos, the return of this value to the coffers would allow an improvement in the primary result, with the estimated deficit going from R$ 143 billion to R$ 90 billion.
LCA Consultores, on the other hand, calculates a deficit of BRL 80 billion for 2023 with the reencumbrance.
Reinforcement can add up to R$ 0.89 per liter of gasoline
Still in Ativa’s calculations, the return of federal taxes may add R$ 0.89 to the liter of gasoline sold at gas station pumps.
For anhydrous ethanol, the additional value would be BRL 0.13, for diesel, BRL 0.35 and hydrated ethanol, BRL 0.24%.
According to Adriano Pires, founder of the Brazilian Infrastructure Center (CBIE), the return of federal taxes would raise the price of gasoline at the pump by around R$0.69. In the case of diesel and ethanol, the increase would be R$ 0.33 and R$ 0.26, respectively.
Pires points out, however, that the impact for the consumer cannot be priced with certainty, since neither the service stations nor the distributors are obliged to change prices when there is a change in taxes.
“Some service station owners may choose to further increase their profit margins, others may want to conquer more market and not increase everything, but the tendency is for people to take advantage of this to increase margins”, he says.
*Posted by Ligia Tuon
Source: CNN Brasil
A journalist with over 7 years of experience in the news industry, currently working at World Stock Market as an author for the Entertainment section and also contributing to the Economics or finance section on a part-time basis. Has a passion for Entertainment and fashion topics, and has put in a lot of research and effort to provide accurate information to readers.
