Last Thursday, Brazil’s Congress approved the Bill of the National Congress (PLN), which allows the reduction of taxes on fuels without the need to compensate for the loss in collection. Generally, whenever a state government accepts to lose revenue (with a reduction or exemption from taxes, for example) it is obliged to specify another source of funds to make the compensation. The bill releases the state governments from this obligation. The approval of the PLN means that governments will be able to reduce taxes and, consequently, reduce the price of gasoline and diesel. Deputy Juscelino Filho (União Brasil-MA), rapporteur at PLN said that the increase in fuel prices the result of a “combination of several factors”. The deputy stated that this has triggered discussions in Congress in search of alternatives to “smooth the rise”. “The PLN intends to create conditions for the proper evaluation and approval of proposals that incorporate taxes reduction levied on the formation of fuel prices”, said the deputy.
Source: Canal Rural/Agencia Brasil (*Translated by Ia Niani)