Senator Fernando Bezerra Coelho (MDB-PE) pointed to an estimated loss of R$ 26.7 billion in state revenues with the proposal that limits state taxes on fuel, energy, telecommunications and transport – below what the governors predict.
Estimates of revenue losses were included in his report on the so-called PLP 18, which was presented in a session of the Senate this Thursday (9).
Bezerra, former leader of the Bolsonaro government in the Senate, also pointed out in his report that the total exemptions from federal taxes on fuel could reach R$ 35.2 billion. In his text, the senator extended the zero rate on alcohol until 2027.
The proposal’s rapporteur sought to counter the states’ version that the drop in revenue with the approval of the measure would present a severe blow to finances, compromising essential services and transfers to municipalities.
In his report, Bezerra included estimates prepared by Conorf –the budget consultancy for the Federal Senate– which points to a financial impact of BRL 26.7 billion this year and BRL 53.5 billion considering the annualized period.
Comsefaz estimates, which Bezerra included in his text, point to losses of R$ 41.3 billion this year and R$ 82.6 billion.
“A debate that we have been witnessing in this House and in the press that sacrifice is often demanded only from states and municipalities. It is not true. In fact, the Union is making a contribution of over R$ 32 billion. If we rely on the estimates of loss made by the Federal Senate, it is much higher than the counterpart to the states, which is just over R$ 20 billion”, said Bezerra, during the session.
In his report, Bezerra also mentions that the estimates of collection with ICMS point to an increase of R$ 66.5 billion in 2022, compared to last year. The senator then concludes that the losses with the PLP 18 will still be lower than the projected high.
The senator also confirmed the inclusion in his text of the measures that had been announced by President Jair Bolsonaro (PL) on Monday (6). The reduction to zero of the Cide-CombustÃveis, PIS and Cofins rates levied on gasoline until December 31, 2022. These measures will represent a tax waiver by the federal government of R$ 17 billion.
A novelty in his report was to determine that the zero rate of federal taxes for hydrated fuel alcohol and on anhydrous alcohol added to gasoline will be in effect until June 30, 2027. it is necessary to maintain the competitiveness of biofuels, with the reduction of rates for fossil fuels, although these should end this year.
The report informs that the measure will represent a cost of R$ 3.3 billion this year; BRL 7.5 billion for 2023; and R$ 7.8 billion for 2024.
Bezerra stated that the inclusion of this item was the result of a political arrangement within the Senate. The economic team, he says, is still not aware of this item.
“It was done here in the Federal Senate, in the sense that we maintain the attractiveness of biofuel in relation to non-fossil fuel, as it exists today. With the movement to reduce fossil fuel rates, it is necessary to guarantee that. guarantee for the period that the law provides, which is the five-year period provided for in the LDO”, he said after the session.
“[A equipe econômica] agrees, but the economic team is aware of this willingness to create this concept for the next five years with the presentation of our report”, he added.
According to the PLP report, all federal tax exemptions for diesel, gasoline, ethanol and LPG could reach R$35.2 billion.
In addition, Bezerra will be the rapporteur of a PEC (Proposal to Amend the Constitution), presented by the government leader Carlos Portinho (PL-RJ), which provides for compensation of R$ 29.6 billion for states that eliminate fuel rates.
Bezerra also confirmed the inclusion in his opinion on PLP 18 of the measures he had announced in previous days.
Under the proposal, already approved in the Chamber of Deputies, states cannot apply percentages higher than the modal rate, which is between 17% and 18%, on fuels, energy, telecommunications and transport.
In a setback for the governors, who were trying to postpone the structural reduction of ICMS rates to 2024, Bezerra decided to keep the backbone of the project approved by the Chamber.
As he had announced, the reporter modified the trigger to be activated when the drop in collection is greater than 5% to facilitate its activation. In the Chamber, the mechanism was applied taking into account total revenues. In the new text, the proposal is to consider only the drop in collection with the items targeted by the rate change.
Bezerra also included in the text a mechanism that will make compensation more immediate. When the trigger is triggered, states that have debts with the Union will be able to deduct the amounts of debt installments paid monthly. Before, the proposal was to write off the stock, with no guarantee of immediate relief in the cashier.
Another amendment provides for the inclusion of mechanisms to compensate states that have losses greater than 5%, but do not have debts with the Union. In 2023, they will receive part of the federal government’s share of the CFEM (Financial Compensation for the Exploration of Mineral Resources). The rapporteur said that five states can fall into this situation, and the impact will be up to R$ 3 billion.
This group will also have priority in obtaining new loans from banks and other institutions.
During the session, some senators were against the proposal – although the current forecast is for approval. Oriovisto Guimarães (Podemos-PR), for example, pointed out that the federal government itself does not have a ready estimate of the impact of these measures to lower fuel prices. And he still recalls the estimate that 30 million Brazilians are hungry.
“This project will help and will basically give some subsidy to those who use gasoline and alcohol. They will subsidize the passenger car. If we are going to subsidize the passenger car, which is something for the middle class, why not subsidize the beans, rice Why is alcohol and why is gasoline, for the passenger car, more important than meat, than beans, than rice? [Parece que] our cars deserve to eat, but our people don’t,” he said.
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