RIO DE JANEIRO, BRAZIL – The Ministry of Economy estimated that a bill to cut fuel taxes sought by President Jair Bolsonaro could cost the Treasury R$54 billion (US$10 billion) a year in lost revenue, a Ministry source said on Thursday, February 3.
The Ministry opposes the bill presented to Congress by a government ally and was not involved in its drafting. It would allow the federal government, states and municipalities to cut tax rates on fuel and gas to zero.
The reduction of the PIS/Cofins tax on diesel would have an impact of R$18 billion in lost revenue, and on gasoline it would represent R$23.8 billion less, in addition to R$3 billion less collected through the CIDE tax on gasoline, the source said.
The proposed tax cuts on other products, such as anhydrous and hydrated alcohol, and biodiesel, would lose the Treasury another R$9 billion.