Lula says it is possible to ‘settle’ the ICMS issue with the governors

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President Luiz Inácio Lula da Silva (PT) said this Friday (27) that he considers it possible to ‘settle’ the issue of ICMS with the governors, who complain about the drop in collection after the entry into force of the law that limited the rate of this fuel tax.

The speech took place during a meeting with governors at the Planalto Palace. As Folha showed, the payment of compensation by the Union to the states due to losses in collection with the change in the ICMS (Tax on Circulation of Goods and Services) on fuels should be one of the main items of the meeting.

Lula stated that the government will not omit itself from the discussion on the tribute.

“The issue of ICMS is something that is on your mind [governadores] since it was approved by the National Congress and it is something that we will have to discuss. We can agree, we can say that it cannot or that it can, but we will not stop discussing any matter with you”, said the president.

In the midst of rising fuel prices, Congress approved a bill that limited the ICMS tax rate on fuel, energy, transport and telecommunications to 17%. The proposal was articulated by the mayor, Arthur Lira (PP-AL), then an ally of then-president Jair Bolsonaro (PL).

Since then, governors have been pointing out problems with falling revenue.

The president also affirmed again that the BNDES will once again be a development bank and that it will finance projects that states and municipalities consider a priority.

“I intend to make the BNDES go back to being a development bank. And for that, you have to be patient and competent and, if necessary, lend money for governors to complete works considered inevitable for the state”, he said.

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