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On Wednesday (18/11), Economy Minister Paulo Guedes and Mines and Energy Minister Adolfo Sachsida signed an agreement with the STF and representatives of states, the Union and Congress to solve the impasse affecting the tax over services and products (ICMS) charged on fuels. According to experts, the agreement can be important to control fuels prices, which had been fluctuating strongly, therefore, pushing inflation up and fueling more discontent among truck drivers, who have been threatening to go on a general strike again since 2018.
The Change on the Tax
This year, after the strong increase in fuels prices due to international – such as the Russian invasion of Ukraine – and local factors, the Federal reduced and unified the ICMS tax rates to a maximum of 17%. Before, the rate was defined by the states themselves.
However, eleven states appealed to the Supreme Court questioning the constitutionality of this measure. A special commission was created by Supreme Court (STF) Minister Gilmar Mendes to try to find a solution before the case went to the plenary of the STF. Since many states charged more than 17% on fuels, the loss of revenue motivated the states to appeal the decision.
The Agreement
With the agreement, it will be necessary to make an agreement between states and the Federal District so that the ICMS collection is made with a single rate to be charged only in the sale of fuels. The settlement, however, does not apply to gasoline – which will be the subject of a separate negotiation.
