This Wednesday (26), the governors decided to extend the freezing of ICMS (Tax on the Circulation of Goods and Services) for 60 days.
The fixed rate, decided at the end of October last year, would end on the 31st.
In a note signed by 21 of the 27 governors, they say that the “proposal represents yet another effort to mitigate inflationary pressures”.
The document also emphasizes that this decision will be taken “until structural solutions for stabilizing the prices of these inputs are established”.
In an interview with CNN this Friday (28), the governor of Espírito Santo, Renato Casagrande (PSB), points out that the measure brings a partial solution with the objective of reducing the impact of the increases, but does not interrupt them.
He argues that governors are giving up revenue to push for prices not to rise, but he points out two factors that are beyond the control of the states.
“Firstly, the political instability, which causes economic instability and an increasingly high dollar value. At the same time, with the increase in the dollar, there is an increase in the price of oil which causes an explosion in prices”, he said.
The governor cites Petrobras’ international parity policy as the second factor beyond governors’ reach, which causes fuel prices to rise.
In the note, the governors demand that the Bolsonaro government changes this Petrobras price policy, speaking of the “urgent need to review the international fuel price parity policy, which has led to frequent readjustments, far above inflation and purchasing power.” of society”.
The governor of Espírito Santo stated that the decision to freeze the ICMS was also taken with the expectation that the Senate would vote on a project for an “equalization fund”.
Renato Casagrande explains that the proposal would allow Petrobras and the federal government “to enter the game objectively in order to equalize the price of fuel according to a federal tax or the result of Petrobras’ profit”.
“Every time oil increases in price, Petrobras also tends to increase its profit due to the international parity that exists in its policy”, declared the governor.
“The governors ask the government to review this parity with international prices, but we also effectively want the Senate to vote on the equalization fund so that we can get out of this growing increase in fuels caused by parity and political instability”, he concluded.
Reference: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
