Brazil’s lower house of congress on Wednesday (13) approved a proposal that establishes a fixed rate for charging the Tax on Circulation of Goods and Services (ICMS) on fuels. The proposal will still be analyzed by the Senate. Deputy Jaziel (PL-CE) compels Brazilian states and the Federal District to specify the ICMS rate charged for each product by the measurement unit (liter, kilo or volume) and no longer by the value of the product. The proposal makes the ICMS invariable against fluctuations in fuel prices and exchange rate changes. The changes established by the proposal can lead to a reduction in the final price charged to the consumer of 8% for regular gasoline, 7% for hydrated ethanol, and 3.7% for diesel B. Currently, the ICMS calculation basis is estimated from the average prices to the final consumer, calculated every two weeks by the state governments.

Source: Canal Rural (*Translated by Ia Niani)