Brazilian state governors skirt fuel reduction law, says Economy Ministry

Gasoline price reached a record high in the country at R$7.27 (US$1.45) per liter, or US$5.50 per gallon. Add to this the massive price increases in essential goods, and it is no wonder that over 50% of households are now considered poor.

RIO DE JANEIRO, BRAZIL - In a memo, the Economy Ministry accused the state governors of not adopting the new fuel tax rules approved by Congress to reduce the price of gasoline, ethanol, and diesel in the country.

The document was released to the press Thursday afternoon (5).

The bill passed by Congress eliminated PIS/Cofins taxes on diesel and gas by the end of 2022.

The Department believes that state governments have managed to take full advantage of the reduction in fuel taxes but have not passed this on to motorists in the form of price reductions.

State revenues have . . .

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