Fuels generate record tax revenue for Brazilian states in 1st quarter

Fuel price increases were the subject of a dispute last year between Planalto Palace and state governors. President Jair Bolsonaro is working on a PEC (proposed constitutional amendment) to zero out federal taxes on products. He has called on 2021 states to cut taxes as well.

RIO DE JANEIRO, BRAZIL - The ICMS tax on motor fuels and lubricants drew record collections from states in 1Q2022. The federal entities collected R$32.76 (US$6.5) billion in petroleum tax revenues from January to March, up 40.5% compared to the same period in 2021.

The share of sub-items for fuels and lubricants in the ICMS (goods and services trade tax) was 23.4% in 2021. It increased to 28.4% in 2022.

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