In an interview with CNN this Sunday (26), Eberaldo Almeida, former president of the Brazilian Institute of Petroleum and Gas, assessed that the suspension of exemption from fuel taxes could be indicative of the government’s fiscal responsibility in the long term.
“It is an important signal about economic policy. Is the government concerned about fiscal responsibility? Minister Fernando Haddad is signaling that yes, but if the market perceives that the exemption will be extended, the reading will be that the minister has lost strength in the articulation and there will be a perception of discredit, which can make the exchange rate rise ”, he said .
“So, even if the value of oil remains static on the international market, the devalued real will make Brazilians pay more not only for gasoline, but for soy oil, meat, pasta, because all of these are commodities.”
The specialist’s analysis takes place days before the decision of the government of President Luiz Inácio Lula da Silva (PT) on a possible extension of the exemption of taxes on fuels.
The measure, approved last year still under the management of former president Jair Bolsonaro (PL), is only valid until next Tuesday (28th) — which means that, as of March 1st, Fuel companies will already have to pay federal taxes to sell gasoline, which should send the price up instantly.
For Almeida, the discussion about extending, or not, the exemption on fuels is, in the political class, a “very short term” vision.
“I prefer to look at the medium and long term. The government needs to show coherence in order to be credible in the market and, thus, make the national currency appreciate and make gasoline, wheat and everything that depends on the dollar cheaper.”
The specialist also commented that the bill weighs more heavily on the pockets of the poorest, because “it is the class that spends a large part of the budget on consumption and food”.
“The Brazilian ends up losing purchasing power because of certain measures like this.”
Check out the full interview in the video above.
Source: CNN Brasil
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