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Senate plan to compensate for high fuel prices increases fiscal impact by BRL 4.8 billion

Senator Fernando Bezerra (MDB/PE), rapporteur of the Proposed Amendment to the Constitution 16/22, which seeks compensation for the rise in fuel prices, presented, this Friday (24), at a press conference, alternative measures to compensation of the states to change the rate of the Tax on the Circulation of Goods and Services, the ICMS. However, the proposal will increase the fiscal impact by almost R$ 5 billion.

Bezerra said that after a meeting with Senate leaders, on the initiative of President Rodrigo Pacheco (PSD/MG), this Thursday (23), there was convergence on some ideas of benefits for the population and categories most impacted by inflation and high fuel prices. instead of directly compensating the states to zero the ICMS on diesel, cooking gas, and reduction of the ethanol rate.

“This decision, for this aid, has been defended by several senators and is a little bit of the rescue of the emergency PEC of 2021. Double-digit inflation has mainly affected the poorest, even increasing poverty in the country,” said the rapporteur.

The initial proposal had the objective of compensating the states that adhered to the government’s proposal of zeroing the ICMS on diesel and cooking gas, it also had the proposal to compensate those that reduced the ethanol rate. It predicted an impact of 29.6 billion reais.

“The PEC had the expectation of creating compensation devices, and these reimbursement amounts would not be subject to the spending ceiling or other legal rules”, added the senator.

The new proposal with four measures should reach R$ 34.8 billion, according to Bezerra, almost R$ 5 billion more than the contribution that the government has committed, so far, for this solution in favor of increasing fuels, totaling R$ 31 billion.

Fernando Bezerra stated that, in order to cover this increase in impact, the government should use the extraordinary credit opening measure, due to the opening in the spending ceiling. The senator also said that, like the states, the Union must have obtained a large collection this year.

“Just as the states are having an extraordinary revenue stream, I believe the Union has also had it with dividends, royalties. I believe that the government has the ballast to make these measures,” she concluded.

The PEC provides that all measures will have a maximum validity until December 31 of this year.

What are the benefits and impact of each, according to the PEC rapporteur:

> Increase in gas assistance to the value of one cylinder per two-month period – 1.5 billion reais
> Aid of BRL 1000 for truck drivers – estimated at BRL 5.4 billion – to serve approximately 900,000 truck drivers
> Compensate urban public transport for granting the elderly free access to urban public transport, already provided for in the Elderly Statute – subsidy to companies would cost R$ 2.5 billion reais
> Increase in 200 reais the Auxílio Brasil, on an emergency basis – cost 21.6 billion by the end of the year

In addition to these measures, the reduction of ICMS on Diesel is also being studied, which the compensation can reach 21 billion; the reduction of ICMS on cooking gas and not zeroing the rate.

A reassessment of the compensation for ethanol is still being carried out, according to Bezerra, the idea is to “improve the issue of competitiveness, improve the criteria for sharing these 3.8 billion, until the complementary law comes.”

Finally, the senator clarified that there are no problems in dealing with Auxílio Brasil, Vale-Gás and Gratuidade to the elderly, since they are social programs that are in effect.

The issue of the truck driver’s voucher is still under discussion as to how not to bump into electoral legislation, since the creation of benefits in an Election year is not allowed. One way out is the characterization of an emergency situation in the transport sector.

“As for the truck driver voucher, there is a discussion about the situation we are facing in the transport sector as a whole. The Senate consultancy is studying this so that we do not violate the electoral law, we are deepening the legal bases so that we can present this voucher,” he said.

Now, the expectation is to present the final report of the PEC next Monday (27), at 4 pm, according to the rapporteur, and with a vote expected on Tuesday (28) or Wednesday (29).

Source: CNN Brasil

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