Nova alíquota de ICMS afetará preços dos combustíveis.

A recent change in the calculation of the Tax on Circulation of Goods and Services (ICMS) is set to affect fuel prices in Brazil. This tax is one of the most well-known by Brazilians and is also one of the main sources of revenue for states. The change was brought about by an agreement between the Supreme Federal Court (STF) and the states to establish a unique collection value per liter of fuel across the entire country. The tax is currently set by each individual state and applies to every step of the process, from refining to the gas pump.

The ICMS was lowered by former President Jair Bolsonaro last year in an attempt to lower fuel prices before the presidential election period. However, the validity of the measure would have ended in December 2022. In January 2023, upon taking office, President Lula kept the decision in place until March. Last month, with the end of the reduction, gasoline and ethanol prices rose again at the pumps.

Under the new agreement, the national ICMS rate on gasoline will be R$1.22 per liter, set below the R$1.45 sought by the states but higher than the value adopted in most Brazilian states. According to data from the National Federation of Fuel and Lubricant Trade (Fecombustíveis), the tax rate was R$0.96 per liter of gasoline in the first half of April in Sao Paulo.

The reduction in the tax will only occur in the Amazonas and Piaui, where it is currently R$1.33 and R$1.24 per liter, respectively, and will come into effect on June 1st. For diesel, the single tariff will have a ceiling of R$0.9424 per liter, which is higher than the rate currently charged in 17 states. The new ICMS for diesel fuel will come into effect on May 1st.

While the idea of a unique tax rate sounds appealing, the agreement is expected to harm the population of many states due to the distinct realities of each region. Local realities differ in terms of production costs and tax collection, which may lead to significant differences in fuel prices across states.

The COMSEFAZ, the National Committee of Secretaries of Finance of the States and of the Federal District, has remarked, “It is inherent in the process of standardizing the rates to not distinguish the various local realities. There is no possible way to avoid initial effects different from those observed today, where the rates adapt to the diversity of Brazilian realities.”

The uniformization of the ICMS collection system is expected to have significant consequences for the economy, particularly for consumers and companies that rely on fuel transportation. The new agreement may result in higher fuel prices, which can lead to increased transportation costs, inflation, and reduced consumer buying power. Additionally, the reduction in state tax revenues may limit public investment in important sectors such as education, health care, and infrastructure.

It is worth noting that the Brazilian government is also implementing measures to reduce fuel prices, such as granting tax exemptions to fuel distributors and increasing the sharing of royalties from oil exploration to states and municipalities. These actions are expected to contribute to the reduction of fuel prices in the long term.

In conclusion, the implementation of a uniform ICMS rate for fuel distribution may seem beneficial at first glance, but its impact on the Brazilian economy is set to be significant. The lack of differentiation between local realities is likely to cause significant disparities in fuel prices across the country, hurting consumers, companies, and state economies alike. Overall, it is essential to find a balance between standardization and local realities to avoid unintended consequences.