Maintaining exemption from gasoline taxes is an economic attack, say entities

The representative entities of the sugar-energy sector, Unica (Union of the Sugarcane and Bioenergy Industry) and FNS (National Sugar-Energy Forum), considered “an economic, environmental, social and legal attack” the maintenance by the Lula government of the tax exemption on gasoline in a note released this Monday (2).

Inaugurated by the Bolsonaro government and extended by the Lula government, the measure keeps PIS/Pasep and Cofins rates at zero until December 31 of this year on diesel, biodiesel and liquefied petroleum gas.

In the case of gasoline and alcohol, the exemption from PIS/Pasep and Cofins will last until February 28th. The text still kept at zero until February 28 the rate of Cide (Contribution for Intervention in the Economic Domain) on gasoline.

It also kept at zero, also until February 28, the rates of PIS/Pasep and Cofins on aviation kerosene and vehicular natural gas.

According to the entities, maintaining the exemption becomes even more serious, especially after President Lula committed to a new standard for combating climate change during COP27, held at the end of November 2022.

“The absence of taxes on gasoline is unparalleled in a world committed to sustainability, as it favors fossil fuel and deepens the destruction of ethanol, which has already been discredited nationally despite its global recognition”, says the publication.

The exemption on gasoline, according to the manifesto, harms the poorest of society, who do not own a car and who depend on federal resources for the areas of health, education and social assistance. “Such resources will be given, at the end of the day, to the most favored, in complete contradiction to what was announced by the President of the Republic”.

Finally, the entities also say that the measure is unconstitutional: “Amendment nº 123 guaranteed the need for a competitive differential for biofuels in relation to their fossil equivalents, except for an exemption, exceptionally foreseen and with compensation by the Union, until December 31 of 2022”.

Source: CNN Brasil

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