Bolsonaro wants states to define new fuel ICMS collection rule

The president Jair Bolsonaro said on Friday that it will be up to the state finance secretaries to decide how to charge ICMS about the fuels. Bolsonaro tries to change the way the ICMS is calculated on gasoline and diesel to reduce fuel prices.

The president told supporters, at the Palácio do Alvorada, that he will send to the National Congress a bill establishing that it will be up to the National Council for Farm Policy (Confaz) to decide whether the ICMS will be charged for a fixed amount or a percentage on the amount of the refinery.

– Confaz will decide whether the amount charged by governors for each liter of fuel is a fixed amount or a percentage of the fuel price at the refinery. And, in a second step, the governors, together with the Legislative Assemblies, will decide the value of this fixed percentage or the percentage above the price of the refinery – Bolsonaro said.

The president also said that he will establish that gas stations put signs detailing the tax values.

– I want to put a sign on each post to know who is taking more tax from you – he said.

ICMS is currently charged at the time of sale of fuel at the gas station, and each state has its own percentage. The percentage is charged based on an average price. The value at the pump is higher than at refineries.

The formation of fuel prices, in addition to the ICMS, also includes federal taxes: Cide and PIS / Cofins. In addition, the final price incorporates costs and profits from Petrobras, distributors and service stations.