South, Southeast and Central-West tend to deny zeroing ICMS; Northeast must support

Most states in the South, Southeast and Central-West regions must reject the government’s initial proposal to zero the ICMS (Tax on Circulation of Goods and Provision of Services) on the import of diesel.

The suggestion made at the Confaz (National Council for Financial Policy) meeting on Wednesday (18) would be to eliminate the tax, with the Union compensating for 50% of the states’ losses due to the lack of revenue.

After the government’s proposal, representatives of state entities spoke about the possibility.

The governor of Rio Grande do Sul, Eduardo Leite (PSD), said in an interview this Thursday (19) that the state would accept a temporary exemption of two months, but with the Union compensating at least 70%. If there is a need to extend the deadline, Leite defends that the Union bears everything.

The revenue impact is one of the main reasons cited by Comsefaz (National Committee of Secretaries of Finance, Finance, Revenue or Taxation of the States and the Federal District) when requesting the presentation of a formal proposal by the Ministry of Finance.

The proposal presented on Wednesday (18) foresees a , with R$ 1.5 billion borne by the Union and R$ 1.5 billion by the states.

The next Confaz meeting is scheduled for March 27th, in São Paulo. At this meeting, it is expected that Rio Grande do Sul will present a counterproposal for the Union to compensate 70% of the states’ losses.

In the Southeast region, the vice-governor of Minas Gerais, Mateus Simões (PSD), criticized the government’s measure, indicating that he rejected the proposal.

In the case of Rio de Janeiro, the state reported that “it is still analyzing the adoption of other measures that could reduce the direct impacts on consumers when purchasing food and other essential products”.

As for São Paulo, the federal government indicated that the state has not yet opened a channel for dialogue on the proposal, tending to reject the measure.

In the Central-West region, governor Ronaldo Caiado (PSD) also indicated that he should reject the suggestion precisely due to the loss of revenue

The Secretary of Finance of Mato Grosso, Rogério Gallo, pointed out the lack of effectiveness of the measure to guarantee a reduction in bombs.

On the other hand, some governors in the Northeast region indicated that they may adhere to the proposal, but with due compensation.

The governor of Piauí, Rafael Fonteles (PT), stated that the state is favorable, but also highlighting the reinforcement of mechanisms to ensure that relief reaches the consumer. Bahia stated that it is open to complying with the measure.

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