Governor of Rio says he accepts to negotiate ICMS reduction on fuels – Money Times

Gas station in Rio
Rio has the highest ICMS in the country, around 34%, and in the state gasoline is already sold at 7 reais a liter at some stations (Image: REUTERS/Amanda Perobelli)

the state of Rio de Janeiro agrees to negotiate a reduction in the rate of ICMS to help reduce fuel prices, but he wants other sectors that influence the formation of value at the pump to also make their contribution, said Governor Cláudio Castro (PL).

Rio has the highest ICMS in the country, around 34%, and in the state gasoline is already sold for 7 reais a liter at some stations.

“Everyone who supplies supplies sees that it is expensive. Are we going to reduce tax? Let’s reduce it, but as long as it’s proportionally the same for everyone. I take two, three percent, city halls too, the federal government too. What I want is to guarantee that it will reach the end for the consumer”, said Castro to journalists, during an event in Rio.

He also recalled that the tax is important for the State’s accounts.

“ICMS is 15 percent of my collection. I can’t give up everything, we have to talk. It is not possible to say that only the States have to reduce, they have to remove local and federal taxes. We will have to negotiate”, he added.

Last Friday, the Petrobras started a campaign to clarify the composition of final prices at the pumps and named the ICMS as one of the main responsible for the final value, in line with the president’s speech Jair Bolsonaro.

Earlier, at a ceremony with the Minister of Mines and Energy, Bento Albuquerque, and the president of Petrobras, Joaquim Silva Luna, Castro was even more forceful.

“This is not the time to say that Petrobras, the government, one or the other is to blame. We have to sit down together and see how each one gives up a little and see how the price decreases, because the population, society and the production chain have to win,” he said.

General Joaquim Silva and Luna
Earlier, at a ceremony with the minister of Mines and Energy, Bento Albuquerque, and the president of Petrobras, Joaquim Silva Luna, Castro was even more forceful (Image: Agência Brasil/Fabio Rodrigues Pozzebom/)

“Nobody has to do press narratives to blame one on the other, it’s all of us to blame. It is not only the 34 percent that will make the price reach 7 reais, but it is also not just the price that comes out of Petrobras. We have to carry out a reanalysis so that we arrive at a fairer formula”.

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