The shortfall for states affected by a R$0,27 drop in ICMS (a state sales tax) on diesel will be R$13,3 billion.
According to the IFI (Independent Fiscal Institution), until the states define the tax rate on diesel, the law mandates that the ICMS (Tax on Circulation of Goods and Services) be calculated based on the average price over the last five years.
247 - A report from the Independent Fiscal Institution (IFI, an agency linked to the Senate) indicates that the R$ 0,27 reduction in the ICMS (state tax) charged on a liter of diesel fuel will cause states to lose R$ 13,3 billion in revenue.
The changes to the ICMS (state sales tax) rules on fuels were approved last week, and the tax will now have a single rate for all states. Currently, each state sets its own rates.
According to the IFI (Independent Fiscal Institution), until states define the tax rate on diesel, the law mandates that the ICMS (Tax on Circulation of Goods and Services) on diesel be calculated based on the average price of the fuel over the last five years. "It is based on this rule that the IFI arrived at a reduction of R$ 0,27 per liter. This would result in an estimated loss of R$ 13,3 billion," highlights a report published in Folha de S. Paulo.
The report also highlights that, if the single tax rate (which is not yet defined) is the national average, the price per liter of gasoline would be above the national average in 13 states and below the average in another 13, in addition to the Federal District. The largest upward deviation was observed in Amapá, with R$ 0,355. The largest downward deviation from the average would occur in Rio de Janeiro, with R$ 0,574.
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