States announce increase in ICMS rates on fuel

The National Council for Fiscal Policy (Confaz), a body formed by the Ministers of Finance, Finance and Taxation of the States and the Federal District, announced this Thursday (26/10) the new ICMS rates for fuel, which will come into force from 1 February 2024.

ICMS on gasoline will increase by 0.15 reais to 1.37 reais per liter. In the case of diesel fuel, the increase will be 0.12 reais to 1.06 reais per liter.

The cooking gas tax rate, in turn, will increase by 0.16 reais to 1.41 reais per kilogram.

The changes are published on the Confaz website. The department has not yet given an explanation as to what led to the increase. This is the first increase in state duty since it began to be charged at a single statewide rate.

The law that unified the ICMS on fuel provided a one-year deadline for the first rate change. Thereafter, reviews will be conducted every six months.

In addition to the uniform rate, ICMS began to calculate in reais per liter, and not as a percentage of the price at the gas station.

ICMS fuel revenue fell 16% to R$73.6 billion through August of this year, according to Confaz data.

The only rate

The new calculation base of the MSMP began to operate on July 1 of this year. Until then, each state charged a percentage of the benchmark price, which was determined every 15 days through gas station surveys.

The single ICMS rate on fuel was provided for in a law approved during the government of former President Jair Bolsonaro (PL), but the matter was referred to the Federal Supreme Court (STF), which was the mediator in the negotiations between the Union, the states and the Federal District.

Last December, the parties reached an agreement, which was approved by the Supreme Court.

Check Also

Unilever reveals plans to return to growth and new…

Rozani RojaOctober 27, 2023 – 6:00 a.m In particular, the company’s food and ice cream …

Leave a Reply

Your email address will not be published. Required fields are marked *