President Jair Bolsonaro announced a new measure to try to lower the price of fuel, and the government will eliminate the PIS, Cofins and Cide taxes on gasoline, alcohol and cooking gas

BRAZIL POLITICS - Report 07 Jun 2022 by Murillo de Aragão and Cristiano Noronha

PLP 18 establishes electricity, fuel, telecommunications and transportation as essential services. That is, the ICMS rate cannot exceed 17%. The government will also eliminate the PIS, Cofins and Cide rates, which are federal taxes, on gasoline, alcohol and cooking gas. In order to transfer funds to states and municipalities, it will be necessary to approve a Constitutional Amendment Proposal (PEC). The fiscal impact of the measure is estimated at between R$ 25 billion and R$ 50 billion. The political environment is favorable to the approval of the measure. As of today, the details of the measure will begin to be negotiated.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.