The president of the Federal Senate, Rodrigo Pacheco (PSD-MG) declared, this Tuesday (21), that he will take the House party leaders to consider the Proposed Amendment to the Constitution (PEC) 16/2022.
The measure establishes that the Union must provide financial assistance to the states and the Federal District to compensate for revenue losses due to the reduction in taxation of the Tax on Circulation of Goods and Services (ICMS) that are levied on fuels.
“Minister Ciro Nogueira stated the willingness to maintain the government’s logic in relation to this ICMS exemption with the respective indemnification to the states, so that from this government provision, I will wash the Senate leaders, as I did in relation to to PLP 18, at a meeting of leaders, the existence of PEC 16”, said Pacheco.
“The government’s willingness to see it appreciated in the Senate and submit to the leaders the timetable for this. When can we do it, what is the understanding of party leaders in relation to the topic discussed there. But it ends up being a measure that is sought to have in Brazil to face the very significant increase in fuel prices”, he continued.
On June 15, PLP 18 was approved in the Chamber of Deputies, which goes to presidential sanction or veto, defining that fuels — as well as energy, collective transport, natural gas for vehicles and communications — are essential and indispensable goods. As a result, state governments cannot charge ICMS on these items above the 17% ceiling established by the text.
ICMS is levied on the circulation of goods and on the provision of interstate and intercity transport and communication services. It is the most important source of revenue for the states, which are obliged to transfer 25% of the collection to the municipalities.
For states that have a loss of revenue in the year 2022 above 5% of what they collected in 2021, the federal government will bear the surplus. This surplus value will be deducted from the debts of the affected state with the Union. This compensation will be valid until December 31 of this year.
Federated entities should not be obliged to follow a determined ICMS rate in order to respect the autonomy of the states and the Federal District, but this rate cannot exceed 17%.
For states without debt to the Union, compensation will be made in 2023 with funds from the Financial Compensation for the Exploration of Mineral Resources (CFEM). These states will still have priority in borrowing in 2022.
Compensation will also be allowed through adjustments with loans already made with other creditors, with the guarantee of the Union. This compensation will be valid until December 31 of this year.
In addition, the bill, as approved by the Senate, now provides that, in addition to gasoline, as defended by the federal government, the PIS/Pasep, Cofins and Cide rate on hydrated fuel alcohol and anhydrous alcohol added to gasoline will be zeroed by 31 December 2022. This point was maintained by the rapporteur in the Chamber.
(*With information from Gabrielle Varella of CNN)
Source: CNN Brasil
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