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On Wednesday (22/06), governors of 11 states filed a lawsuit in the Federal Supreme Court (STF) against the law, approved in March and sanctioned by President Jair Bolsonaro, which determined the incidence of state ICMS on fuel a single time, with uniform rates all over the country, and in reais. The action is signed by the governors of Pernambuco, Maranhão, Paraíba, Piauí, Bahia, Mato Grosso do Sul, Sergipe, Rio Grande do Norte, Alagoas, Ceará and Rio Grande do Sul.
An Attempt to Contain Fuel Inflation
Before the law, the ICMS rate varied depending on the state. The Federal Government, which seeks an alternative to contain fuel inflation in an election year, argues that the old model made the product more expensive. ICMS is a state tax and corresponds to a large part of the state’s revenue. Governors argue that the new law harms revenue and does not solve the problem of prices, because oil is rising on the international market.
