Haddad asks Bolsonaro not to extend exemption for fuel

Future Finance Minister Fernando Haddad (PT) asked the Jair Bolsonaro (PL) government not to extend the exemption of federal taxes on fuel.

According to Haddad’s advisory, there is still no response from the Bolsonaro government.

Earlier, the future minister said that there was “speculation” that the Bolsonaro government would issue an MP (Provisional Measure) extending the exemption period for these taxes. Under current rules, exemption ends on December 31. The current government plan would extend for another 30 days.

“I’m going to take to Lula the scenarios that the current team is putting. For him, on behalf of the elected government, to address what he considers the best decision”, said Haddad, before the announcement about the request not to extend the exemption.

Haddad took Lula’s message to members of the current government and said that he hopes for “understanding”, according to the advisory of the future minister. He would also have argued that changes in the collection of these taxes can be made quickly and that the future government will reassess the issue after taking office.

Lula’s economic team has not indicated whether or not it plans to renew the exemption. The advisory of the future minister said that the request made to the Bolsonaro government is not to renew the exemption from PIS and Cofins.

Bolsonaro announced during the elections a package of measures to bring down fuel prices. The rise in fuel prices, which put pressure on inflation, was one of Bolsonaro’s main concerns for the campaign.