Governor agrees to negotiate ICMS reduction on fuels

RIO DE JANEIRO (Reuters) – The State of Rio de Janeiro agrees to negotiate a reduction in the ICMS rate to help reduce fuel prices, but wants other sectors that influence the formation of value at the pump to also make their contribution, he 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 taxes? We are going to reduce them, but as long as it is proportionally the same for everyone. I take two, three percent, city halls too, the federal government as well. will reach the end for the consumer,” Castro told reporters, during an event in Rio.

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

“The ICMS is 15 percent of my collection. I can’t give up everything, we have to talk. You can’t say that only the States have to reduce, they have to take out local and federal taxes. We’ll have to negotiate,” he added .

Last Friday, Petrobras started a campaign to clarify the composition of the final prices at the pumps and named the ICMS as one of the main factors responsible for the final value, in line with a speech by President 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 together and see how each one gives up a little and see how the price decreases, because who has to win is the population, society and the production chain,” he stated.

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

(By Rodrigo Viga Gaier)