Economy

Bolsonaro says that compensation to states in ICMS project is not appropriate and signals that he can veto

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President Jair Bolsonaro (PL) said this Thursday (26) that the compensation to the states provided for in the project approved in the Chamber that limits the ICMS (Tax on the Circulation of Goods and Services) on energy and fuels is not appropriate.

The chief executive also said he could veto the device. Approved the day before by deputies, the text went on for analysis in the Senate.

“I see that they amended for the federal government to compensate for possible losses. There is no point there. They created a federal subsidy for the government to pay on top of fuel,” he said.

“If it is approved in the Senate, I will see what the opinion of the economy is to sanction or veto. Although I veto it, it does not mean that the matter is resolved. The veto can be overturned”, he added.

Bolsonaro also said that the federal government zeroed its taxes on diesel and gave up raising almost R$20 billion. According to him, governors have “surplus money”.

He also said that the project is not his, but is sponsored by the president of the Chamber, Arthur Lira (PP-AL), and welcome.

The proposal is part of an offensive by Lira to try to reduce the price of energy in the country, amid concern among allies of the president about the impact of inflation on the elections.

The project classifies fuels, natural gas, electricity, communications and public transport as essential goods and services. With this, it would be worth understanding the STF that limits the incidence of the tax on these items to a range of 17% to 18%.

The Chamber’s final proposal began to provide for compensation to states in case of loss of revenue. For indebted entities, the Union will deduct from the value of the installments of the debt contracts the collection losses greater than 5% in relation to 2021. The deduction goes until December 31, 2022 or until the debt runs out.

The basic text of the project on Wednesday night (26) by 403 to 10. The deputies rejected suggestions to modify the proposal – which, now, goes to the Senate. The states, however, react to the text and are already talking about barring the proposal in the neighboring House or even in the STF (Federal Supreme Court).

bolsonaro governmentenergyfuelsicmsJair BolsonaroleafPolicystates

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