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States estimate loss of R$ 100 billion with ICMS ceiling

The president of the Chamber of Deputies, Arthur Lira (PP-AL), said this Thursday (19), that he will put to a vote next Tuesday (24) the law that classifies fuels, electricity, telecommunications and transport as essential goods and services, with a maximum ICMS rate of 17%.

The announcement comes less than 24 hours after the meeting between Lira and the Minister of Mines and Energy, Adolfo Sachsida. The parliamentarian demanded an action from the portfolio to avoid new adjustments in the electricity bill, already approved by the National Electric Energy Agency (Aneel).

“We are going to see the participation of the Chamber, the Senate, and other powers in a haughty debate, so that we can exempt and reduce taxes on these sectors that will become essential”, said Lira.

Today, the energy tax varies by state. Roraima has the lowest rate: 17%. The average in the country is 26%. But some states like Minas Gerais and Rio Grande do Sul charge 30% ICMS. Rio de Janeiro has the highest rate: 32%.

It means that the proposed ceiling should bring some relief from the electricity bill. The Brazilian Association of Electric Energy Distributors (Abradee) estimates a reduction of 10% for the consumer.

The maximum ICMS rate of 17% is also below the national average for gasoline, which is currently 27% and 18.7% for ethanol. But above the average incidence for diesel, which is 13.8%.

Even so, the initiative is criticized by the state finance secretaries, who predict billions in losses with the drop in energy and fuel collection.

Arthur Lira gains more and more protagonism in the conduction and political articulation. The mayor has already taken the lead in part of the country’s economic agenda, rushing to resolve issues, such as inflation, with a resourcefulness that is confused with that of a minister of state. Interlocutors claim that the politician seeks a practical agenda, amid the clash between President Jair Bolsonaro (PL) and the institutions.

While Lira was negotiating a way out of fuel and energy hikes, the president continued on in yet another chapter of discussions with the judiciary. During an event, he stated that the Supreme takes up more than 50% of his time.

“More than half of my time I spend defending against undue interference by the Federal Supreme Court. That’s sad,” Bolsonaro claimed.

Source: CNN Brasil

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