Downplaying the effects of the pandemic in Brazil for action, President Jair Bolsonaro is now using the war in Ukraine to take a measure to try to contain the rise in fuel prices. The measure is electoral and financially irresponsible.
The idea announced this Monday (6) night is to create an indemnity to States to reset the main state tax, the ICMS (Circulation of Goods and Services Tax). The Union will hold the account for States to agree to reduce the ICMS to 17% and receive the corresponding percentage from the federal coffers.
The Chamber has already approved the 17% ICMS ceiling for fuel and energy. The bill is pending in the Senate. Bolsonaro sought support from governors and promised to pay everyone as much as they can raise with the new ICMS
Bolsonaro’s negotiation with Congress is a mitigating measure, but will have little effect on the already rapidly rising price. The presence of Senate President Rodrigo Pacheco (PSD-MG) and House Speaker Arthur Lira (PP-AL) aims to create an aura of institutional understanding. Pacheco and Lira talked about lowering or zeroing other federal taxes on fuel, cooking gas, energy and telecommunications.
“We’re going to protect the Brazilian population again,” said Economy Minister Paulo Guedes, who had long awakened to help Brazilians in the pandemic. Guedes is trying to give the impression of fulfilling an election promise (indicating the electoral character) by the end of the year with a tax cut. If states agree to a deal that will last until January 31, how will they do it later? Will they get stuck in the 17% ICMS ceiling? The measure will have work to be approved by Congress.
The proposal is financially irresponsible as it will generate an invoice to be paid after the selection. Less than four months before the election, there is hypocrisy in just initiating the electoral measure.
Bolsonaro decided to propose creation Another financial framework for the next president and governors of the republic. Unable to change Petrobras’ pricing policy, which has so pleased private shareholders, Bolsonaro now wants to throw most of the bill into the Treasury’s coffers.
It is, in essence, a receipt for the electoral despair Bolsonaro and his fellow Centrão fell into to secretly lead the worst government in the country’s history. they promise to stop heritage Another financial hole to be charged to the next president and Brazilians from January 1, 2023.
source: Noticias
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