Rapporteur maintains controversial tax on oil exports

The rapporteur of two projects on the subject of fuel in the Senate, Jean Paul Prates (PT-RN), decided to insist on the creation of a tax on oil exports as one of the sources of financing to subsidize part of the price in times of high.

The new opinion of one of the projects was presented this Thursday afternoon (17). The bill creates a stabilization account to contain fluctuations in fuel prices.

Another initiative seeks to change the way in which ICMS (Imposto sobre Circulação de Mercadorias e Serviços) is charged on fuels, and, with the most recent changes, it may also expand the reach of Auxílio Gás, a subsidy for low-income families to buy cylinders.

The maintenance of the export tax could make it difficult to reach an agreement to vote on the matter next week, as currently planned. His exclusion was requested by some of the main benches in the Senate, such as PL, PSD, MDB and Citizenship.

Amendments were presented to withdraw the tribute from the leaders of the PL, Carlos Portinho (RJ), of the MDB, Eduardo Braga (AM), and of the PSD, Nelsinho Trad (MS). All were rejected by the rapporteur, who decided to keep the tax.

The economic team is also against the creation of the new tax, considering that it hinders investments already made, in progress or in the future, by reducing their profitability.

According to the text, the tax rate would vary according to the price of a barrel of oil on the international market. Up to $45 per barrel of crude oil would be exempt from the tax.

Above this value, the rate would be at least 2.5%, and could reach up to 20% if the quotation exceeds US$ 100 — a scenario very close to the current moment.

In one of the few changes, the PT senator only exempted from paying the tax the oil and gas fields with “marginal economy”, that is, which are not very profitable.

The tax on oil exports would be one of the sources of funding for the fuel subsidy. Each would have a separate account—diesel, gasoline, gas, ethanol. The accounts could also be supplied with resources from Petrobras dividends and royalties collected by the Union.

The maintenance of the tax could make it even more difficult to reach an agreement for the vote on the proposal next week. Parliamentarians argue that taxes always end up being passed on to the final consumer. The assessment is that, even though it is an export tax, it will end up affecting Brazil, since the country exports crude oil and imports refined fuel.

On another point that could make negotiations difficult, Prates accepted an amendment that removed the Central Bank’s foreign exchange profit from the source of funds for the stabilization account.

The proposal targeted by this Thursday’s opinion (17) is not the only one that displeased members of the government and Congress. The second project provides for a change in ICMS rules on fuels.

The opinion of Prates, presented on Wednesday (16), considerably modified the version approved in the Chamber. The senator’s idea is to have a single ICMS rate on fuel, with the possibility of a fixed charge per liter (today it is a percentage of the price), but with optional adoption by the states.

The changes provoked a great reaction on the part of the president of the Chamber, Arthur Lira (PP-AL), who supported the previous version, which forced governors to adopt the fixed charge per liter and stipulated a ceiling for the new rate.

Both projects were scheduled to be voted on on Wednesday (16), but were excluded from the agenda after a meeting between Jean Paul Prates, Lira and the president of the Senate, Rodrigo Pacheco (PSD-MG). At first, the new forecast is that they will be voted on on Tuesday (22). A new opinion on this second proposal, on ICMS, should be released next week.

UNDERSTAND THE PROPOSALS TO REDUCE FUEL PRICES

In the camera

PEC still without number (did not gather enough signatures)

• Author: Deputy Christino Áureo (PP-RJ), who presented a text formulated by the Civil House

• What it provides: Union, states and municipalities will be able, in 2022 and 2023, to reduce or eliminate taxes on fuel and gas without compensation; extrafiscal taxes (such as IPI, IOF and Cide) may also be reduced in 2022 and 2023, not only on fuel and gas

• Impact: BRL 54 billion, according to government calculations

in the senate

PEC 1/2022

• Author: Senator Carlos Fávaro (PSD-MT), with the support of the President of the House, Rodrigo Pacheco (PSD-MG)

• What it provides: allows, in 2022 and 2023, to reduce federal, state and municipal taxes on the prices of diesel, biodiesel, gas and electric energy, without compensation for the loss of revenue; allows the reduction of other taxes of an extrafiscal nature (such as IPI, IOF and Cide); authorizes the Union to create, in 2022 and 2023, a diesel aid of up to R$ 1,200 per month to self-employed truck drivers; it also allows the expansion of Auxílio Gás, in number of families and in subsidized value (50% to 100% of the value of the cylinder); authorizes transfers of up to BRL 5 billion to municipalities to subsidize free access to seniors and avoid a significant increase in tariffs

• Impact: More than BRL 100 billion, according to government calculations

PLP 11/2020

• Rapporteur: Senator Jean Paul Prates (PT)

• What it provides: allows fixed charging of ICMS per liter of fuel (today, the charge is a percentage of the price); Senator included expansion of Auxílio Gás, for 11 million families; government wants to include in this project the exemption of diesel

PL 1472/2021

• Rapporteur: Senator Jean Paul Prates

• What it foresees: creation of a kind of fund to be used to stabilize fuel prices; resources would come from a tax on the export of oil and derivatives