Guedes and Lira try to convince Pacheco to limit state taxation on energy

The Ministry of Economy sees the bill that seeks to limit state taxation on electricity and other goods and services as the best way to contain the rise in electricity bills. The ministry reinforced the articulation for the proposal, which can be voted on in the coming days.

Minister Paulo Guedes’ team (Economy) argues that the governors have full boxes and that it is necessary to return this revenue directly to the population instead of departing for solutions seen as ineffective — such as the creation of subsidies. Therefore, cutting taxes is considered the most appropriate act.

Guedes defended the plan in conversation with the president of the Senate, Rodrigo Pacheco (PSD-MG). The two met on Friday (20) and, after hearing the arguments, Pacheco replied that he would analyze the issue.

Pacheco had already had a previous meeting with Lira about the project. Although he did not manifest himself to the contrary, the senator said that the studies would be in-depth and that there would be dialogue with leaders of the House to evaluate the proposal.

Lira has been pressing for measures to contain the readjustments in the electricity bill. Last week, he met with the Minister of Mines and Energy, Adolfo Sachsida, and gave the government an ultimatum, saying that the government would have to find a solution or Congress would act. Then, the president of the Chamber said that in the coming days he will guide the project that seeks to limit state taxation.

This Sunday (22), he returned to the topic and used his social networks to criticize what he calls excessive taxation.

“Either Brazil ends the excessive taxation of essential goods and services or the excessive taxation of goods and services ends Brazil. Brazil needs to control the saúva, once again”, he posted.

Government and allies have expressed concern about the impact of inflation on this year’s elections. According to Datafolha, 68% of Brazilians believe that the government of President Jair Bolsonaro (PL) is responsible for the rise in fuel prices.

The bill seen as an exit (18/2022), presented in March by deputy Danilo Forte (União-CE), has entered an emergency regime in recent days. The text proposes that electricity, fuel, communications and public transport are considered essential items and, therefore, cannot have a higher rate than the general level.

The deputy considers the current ICMS percentages on these items to be excessive and says that they should be lower because they are widely used by people and companies.

“Considering that energy, fuels, communications and collective transport are used by various citizens and legal entities, their excessive taxation, through the application of ICMS rates higher than the ordinary ones, flagrantly violates the Constitution”, says Forte in the justification text.

If the proposal is approved, ICMS taxation on these items would be limited thanks to an understanding reached by the Federal Supreme Court (STF) in November 2021. The Court considered that essential goods and services – such as energy and telecommunications – cannot be taxed than operations in general, which have rates between 17% and 18% in the states.

“Adopt by the state legislator, the technique of selectivity in relation to ICMS, the rates on electric energy and telecommunication services operations at a higher level than operations in general, considering the essentiality of goods and services”, differs from the constitutional design. the thesis established by the STF.

In the state of São Paulo, for example, the legislation provides for a rate of 12% for residential consumption of up to 200 kWh per month and 25% for monthly consumption above 200 kWh.

According to calculations by the BTG Pactual bank used as a preliminary reference by the government, the change would take R$ 53.6 billion from state and municipal coffers (which receive a part of the ICMS charged by governors). The account is made by Fábio Serrado and Bruno Balassiano, analysts at the institution.

In public power, the estimate is a greater impact. The CMN (National Confederation of Municipalities) calculates a loss of BRL 65.6 billion for the public coffers — and, for mayors, the annual loss would be BRL 15.4 billion.

Sérgio Gobetti, economist and current advisor to the government of Rio Grande do Sul, estimates an even greater loss — R$ 70 billion. When consulted, Comsefaz (committee of state finance secretaries) informed that it is still analyzing the data to calculate the impact of the project.