MP extending fuel exemption will have an impact of R$ 25 billion

The federal government will stop collecting about R$ 25 billion with the extension of the exemption of federal taxes on fuels. The rates of PIS/Pasep and Cofins levied on diesel oil, biodiesel and liquefied petroleum gas are reduced to zero until December 31 of this year.

With this, the government will stop raising about R$ 19 billion. The collection of the two taxes on gasoline and alcohol is suspended until February 28, which corresponds to a loss of R$ 5.667 billion.

The text also eliminates, until February 28, the collection of PIS/Pasep and Cofins on aviation kerosene and vehicular natural gas, including imported ones, and suspends the collection of the Contribution for Intervention in the Economic Domain on gasoline for the same period.

The Provisional Measure was published in an extra edition of the Federal Official Gazette this Monday.

“When we talk about the sustainability of the public debt, it is not enough to look only at expenses. On the flip side, the issue of public debt is also related to the amount of revenue the government obtains to later determine the primary surplus and the interest rates that impact the entire stock of public debt”.

For him, the government should have more difficulty reviewing the tax exemption on diesel oil, which is more sensitive from the point of view of road transport and has a more significant inflationary effect. It is no coincidence that this derivative will last at least until the end of 2023.

“If the exemption were withdrawn simultaneously for all fuels, the impact on prices would be widespread at the beginning of the year. It also has political impact. We know that the truck drivers category has a high aversion to the current government”, he evaluated.