States will appeal STF decision on fuel ICMS

States will appeal STF decision on fuel ICMS

STF determined injunction that the ICMS on fuels – diesel, gasoline, ethanol and LPG – must be uniform throughout the national territory.

The States will appeal against the decision taken by the Minister of the Federal Supreme Court (STF) André Mendonça, who ruled in ICMS on fuels – diesel, gasoline, ethanol and LPG – must be uniform throughout the national territory.

The president of the National Committee of State and Federal District Treasury Secretaries (Comsefaz), Décio Padilha, stated that the magistrate’s decision implies loss of revenue BRL 31 billion in 12 months.

According to Padilha, state policies on education, health and safety will be compromised since, on average, 70% of state revenues come from ICMS collection.

The president of Comsefaz also stated that the loss of state revenues in 12 months will exceed R$ 131 billion when added to the impact of the approval of the bill that limits the tax rate on fuels, public transport, electricity to 17%. and telecommunications.

“ICMS collection is linked. Of the total, 25% go to education, 12% to health and another 25% to the municipalities. These impacts will make the public policies of states and municipalities unfeasible,” he said.

Padilha also stated that the increase in fuel prices is due to the rise in the value of oil, influenced by the war in Ukraine. For him, the adequate solution to this problem is not to reduce state taxes, but to create an equalization account with dividends from Petrobras.

According to him, the price of diesel has risen by 60% since January in view of Petrobras’ readjustment policy.

“The important thing is to take technical paths and get out of the narrative war. The technical path is to create a conjunctural solution, which is the equalization bill and vote on the tax reform, PEC 110, which is stalled in the Senate,” he said.

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