Brazil’s President Jair Bolsonaro sanctioned without vetoes Complementary Law 192/22, which provides for the incidence on Tax on the Circulation of Goods and Services (ICMS) on fuels, including imported ones, based on a fixed rate per volume traded. In addition to changes in ICMS, the new law also changes the federal PIS/Pasep and Cofins norms, providing for a fuel exemption in 2022. The new standards cover gasoline, fuel ethanol, diesel, biodiesel and liquefied petroleum gas, including the derived from natural gas. Aviation kerosene was left out according to the Chamber Agency News. The rates will be based on the unit of measure (liters, for example) and will be defined by a unanimous decision from the Council of State Secretaries of Finance (Confaz), so that there is no increase in the proportional weight of the tax in the final value to the consumer. The basis for calculating the current diesel rate will be the moving average of the average prices charged to the final consumer in the 60 months prior to its establishment. This transitional rule will be in force until December 31, 2022.
Source: Jornal Cana (*Translated by Ia Niani)