Mine Tankers Threaten Strike if State Does Not Reduce ICMS on Diesel – Economy

The Union of Transporters of Fuels and Petroleum Derivatives of Mines (Sindtanque-MG) informed this Thursday (26), through a note signed by the organization’s president, Irani Gomes, that it could trigger a strike movement “as never seen before in our State” if the state government does not reduce ICMS on products, especially diesel.

According to the official, the successive increases in fuel prices, which have burdened the budget of Brazilian consumers, in general, have also been “a reason for headaches for transporters of fuel and oil derivatives”. “The input, in this case diesel, corresponds to around 70% of freight costs”, emphasizes Gomes.

Also according to the president of Sindtanque-MG, one of the main “culprits” for the high prices are taxes, especially those charged by state governments, such as the ICMS (Tax on Circulation of Goods and Services) and the PMPF (Weighted Average Final Price) .

“Governor Zema turned his back on the transporters of fuel and petroleum products in Minas Gerais,” says Gomes. “In Minas, for ten years, the ICMS rate on diesel has been 15%, one of the highest in the country. Over these years, Sindtanque has been demanding a reduction of this percentage to 12%. But the promises made by the successive governments were never fulfilled. In the Zema government, the indifference to the demands of the tankers has been even greater”, he complains.

Gomes also recalls that, in February this year, “in a vote of confidence to the state government”, the transporters in the sector suspended an ongoing strike and waited until the end of July for an answer to their claims, without success.

“After several meetings, the government of Minas did not offer any benefits, no improvement for the category. The commitment to return the ICMS rate on diesel to 12% was only a promise. Governor Romeu Zema, who was once the owner of fuel distributor and is aware of the harsh reality that we are facing, it turned its back on the sector,” criticized the union leader.

The tanker representative also stated that the category does not intend to give up the reduction of ICMS on diesel, from the current 15% to 12%. “We are in a ‘strike state’ and mobilized to, if necessary, cross our arms again, in a great movement, for an indefinite period, as never before seen in our state.”

Other side

Sought, the government of Minas clarified, in a note, at the beginning of the evening, that the ICMS rates on fuels in the state have not undergone changes recently. According to the Executive, the last changes were in January 2018 (the tax on gasoline went from 29% to 31% and on ethanol, from 14% to 16%) and in January 2012 (the ICMS tax on diesel jumped from 12 % to 15%);

“That said, it is important to make it clear that the latest readjustments in fuel prices are not due to the ICMS charged by the State, but rather to the pricing policy adopted by Petrobras,” the government maintained.

And he added: “Taking diesel as a reference, this is the current distribution of price indices:

DIESEL S500

10.5% Distribution and resale

11.3% Biodiesel cost

15.0% ICMS

7.1% Cide, Pis and Cofins

56.1% Petrobras Price

DIESEL S10

10.9% Distribution and resale

11.2% Biodiesel cost

15.0% ICMS

7.0% Cide, Pis and Cofins

55.9% Petrobras Price”

As for the possibility of reducing the current ICMS rates on fuels, the Executive stressed that “it is necessary, first, an authorization, unanimously, from the National Council for Finance Policy (Confaz)”. “Therefore, the version that the government has promised such a reduction is not valid. What was defined in the last meeting with representatives of Sindtanque is that the entity’s claim would be presented to Confaz as, in fact, it was last month. , the request was rejected by the Council, formed by the Secretariats of Finance of the 26 States and the Federal District”, informed the State.

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