Bolsonaro sues STF against ICMS collection on fuels

President Jair Bolsonaro (no party), represented by the AGU (Attorney General of the Union), filed a lawsuit in the STF (Supreme Federal Court) requesting a change in the collection of ICMS on fuels. In his live yesterday, Bolsonaro had warned about the action.

The President asks the Court to recognize that governors cannot charge the tax proportionately. “It has to be a fixed face value,” he declared yesterday. Official data, however, show that the factor that weighed most for the price increase in recent months were the adjustments made by Petrobras, and not the ICMS.

In action, the president requires that 120 days be given for Congress to pass a law that uniforms state rates.

“The strong asymmetry of ICMS rates gives rise to problems that go far beyond the integrity of Brazilian fiscal federalism, burdening above all the final consumer, who ends up penalized by the high cost generated by excessive rates for fuel”, says the text sent to the Supreme Court.

Bolsonaro usually attributes the high price of gasoline and other fuels to the collection of ICMS, which is the responsibility of state governments. However, despite the tax making up an important part of the final price of fuel, the percentages have not changed recently.

Experts heard by UOL recently pointed out that the main responsible for the increase in value is Petrobras’ pricing policy.

“What is evident, in both senses, is that the provisions of the constitutional text regarding the taxation of fuels by ICMS are not being observed by the rules that currently regulate the hypothesis”, argues the president, who also said that there is a at least 20 years Congress has been silent on legislating on the matter.

*With Reuters.