ICMS Zero out of the question. R$ 150 million per month to smooth the rise in fuel prices

“No intervention in terms of VAT is on the table”, neither in fuel nor in the food basket.

The Prime Minister stated today that “No intervention in terms of VAT is on the table”, neither in fuel nor in the food basket.

Luís Montenegro was speaking at the end of the weekly meeting of the Council of Ministers.

However, the Prime Minister did not rule out taking additional measures to support families, gradually, if the conflict in the Middle East persists.

“We are monitoring the evolution of the situation. And, if it is necessary to take additional measures, we will do so gradually, as the situation also evolves”, he said.

Asked about a possible VAT reductionthe Prime Minister argued that, in the case of fuels, “not necessary” because the discount mechanism adopted by the Government in the ISP “cancels the effect of VAT in the increase in fuel prices”.

“In the case of food basket, we, at this moment, We do not see this as an appropriate measure, there are other possibilities (…) If we have to take any measure, the probability of it being that is very low and it is not being considered at the moment”, he stated.

Regarding other additional measures, Montenegro said that the Government is “studying several possibilities that could be launched in the coming weeks, in the coming months, if the situation evolves negatively from the point of view of instability in international markets”, whether in the area of ​​fuels or in other sectors that could affect the prices of essential goods.

It had been reported that the Zero VAT and income support were excluded; regarding bonuses for retirees, the Government will still consider it.

Fuel support

The Government approved measures to address the increase in fuels due to the war in the Middle East at a cost of around R$150 million per month, announced the Prime Minister.

“In total, the measures we are taking mean around R$150 million per month of support in the fuel area. The financial balance that has guided our policy gives us better conditions to also be able to face adversities”, he defended.

In addition to maintaining the discount on the ISP, in force since March 9th, the government today approved new support to be in force for three months, between April 1st and June 30th, for those used by freight transport, extraordinary support for the agricultural, forestry, fishing and aquaculture sectors, support for humanitarian firefighters associations and taxi companies and a single payment to Private Social Solidarity Institutions.

Montenegro highlighted that it is “fundamental to manage this support with balance, responsibility and prudence”, as the impact and duration of the war in the Middle East is unknown.

“Not to unbalance public accounts, so as not to throw away our collective effort over the years”, he appealed.