The Provisional Measure (MP) that increased federal taxes on diesel and created a discount program for new cars expired on Tuesday (03). As a result, fuel taxes will be zeroed until December 31, 2023, and prices at the pump may drop. An MP is valid for 60 days and can be extended for another 60 days, but it needs to be approved by Congress afterward. As this did not happen, the MP lost its validity after 120 days, and the May law that established tax exemption will come into force again. With the MP’s expiration, diesel prices are expected to drop, as taxes are reduced to zero.
Source: Noticias Agricolas (*Translated by Ia Niani)