With state-level VAT cap on fuels, gasoline price in Brazil would drop to R$5.56 -senator
RIO DE JANEIRO, BRAZIL – Calculations by Senator Fernando Bezerra Coelho (MDB-PE), rapporteur of Bolsonaro’s state-level VAT cap project (ICMS on Fuels, Electricity, Transportation, and Telecommunications), show that gasoline and diesel prices would drop significantly if the proposal is approved.
- Reduction of R$0.76 in the price of diesel, from R$6.88 to R$6.12 (US$1.25) per liter;
- The price of gasoline would decrease by R$1.65, from R$7.21 to R$5.56 (US$1.13) per liter.
The averages are based on the ANP (National Agency of Petroleum, Natural Gas and Biofuels) price collection system from May 29, 2022, to June 4, 2022.
However, Bezerra’s text says that the international fuel scenario could worsen. If prices are rising despite the approval of measures – in addition to PLP 18, reported by Bezerra, the government of Jair Bolsonaro (PL) has presented a PEC that provides for a transfer of R$29.6 billion (US$6) to states that zero out the ICMS for diesel, natural gas and cooking gas.
PLP 18 is scheduled to be voted on Monday (Jun 13, 2022) in the Senate plenary.
With information from Poder360
For the full picture, see our Brazil Tax Reform: Complete Guide.
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