Provisional Measure expires and Taxes on Gasoline and Ethanol Increase this Thursday
The change on gasoline had an increase of R$ 0.34 per liter, while on ethanol the increase was R$ 0.22 per liter. Initially, the forecast was that taxes would only increase on July 1st, but the Provisional Measure that established this data lost its validity on Wednesday.
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The Internal Revenue Service confirmed that the Provisional Measure that established the reduction of federal tax rates for gasoline and ethanol lost its validity on Wednesday (28), since it was not voted on by Congress.
According to information from Brazilian Association of Fuel Importers (Abicom) and the Legal Fuel Institute (ICL), the complete reintegration of the PIS/Cofins charge is already reflecting an increase in gasoline and ethanol prices as of Thursday (29). According to the data, gasoline will have an increase of R$ 0.34 per liter, while ethanol will suffer an increase of R$ 0.22 at the filling stations that are subject to this change.
Tributes
A PIS/Cofins collection was interrupted last year, however, in March, the Lula government announced the partial reintroduction of federal taxes on fuels. Initially scheduled to take effect only on July 1, the increase in federal taxes was brought forward by two days due to the expiration of the Provisional Measure that established a federal minor.
With the resumption of the full collection of federal taxes, starting this Thursday, the total amount charged on gasoline will increase from 29%, current value, to 35.3%. This means that gas stations have autonomy to determine prices to be charged to consumers. Typically, when increases in fuel prices occur at refineries or in taxes, these increases are quickly passed on to the consumer.
According to the ICL, in relation to ethanol, the tax burden will increase from 12.9% to 18.8%. This information is based on fuel values recorded on June 17th. The return of taxes has generated concern for Fecombustíveis, according to a note from the institution "If there is no government initiative in the opposite direction, full federal taxes will be added to the composition of prices, whose collection will have an impact on distribution and resale and, consequently , could impact the final consumer".
Tax increase
In June 2022, federal taxes levied on gasoline and ethanol were eliminated in order to contain the increase in prices. However, that measure was scheduled to expire on January 1. To extend this period, President Luiz Inácio Lula da Silva (PT) decided to extend it for another two months.
In February, the economic team announced a partial increase in taxes, resulting in an increase of R$0.47 per liter for gasoline and R$0.02 per liter for ethanol. In order to compensate for the loss of revenue resulting from this only partial increase, the government implemented a tax on the export of crude oil. In early May, during a public hearing in the Chamber of Deputies, the Minister of Finance, Fernando Haddad, mentioned that Petrobras could reduce fuel prices in the coming months to offset the increase in federal taxes expected for July.
On the same day, Petrobras had issued a statement on May 17, explaining that it would not disclose early decisions on price adjustments and stated that no decision by its Executive Market and Prices Group (GEMP) had been announced to the market until then.
