Zema on Bolsonaro’s proposal to freeze ICMS: ‘It can affect finances’

Zema in the Administrative City
Romeu Zema admits that consumers pay very high fuel prices (photo: Jair Amaral/EM/DA Press)

The governor of Minas Gerais, Romeu Zema (Novo), said this Thursday (27/1) that the proposal made by President Jair Bolsonaro (PL) to include the freezing of ICMS on fuels in the Proposal for a Constitutional Amendment (PEC) could harm state accounts. To contain the constant increases in recent months, the Confaz (National Committee for Farm Policy) approved the extension of the tax on fuels until March 31.

The decision had the support of the 27 governors. Bolsonaro’s proposal aims to reduce or even zero taxes on fuel. The idea of ​​this PEC is to prevent the values ​​of gasoline, cooking gas, diesel and electricity from rising even further in the near future.

“What the federal government proposes can affect state finances and we don’t have that much room for manoeuvre,” said Zema, in an interview with CNN Brasil.

Despite this, the manager says that it is time for sacrifices: “It is not easy for many governors to carry out this freeze. This period of 60 days has been much discussed in recent contacts. No state, like Minas, has resources to spare. Minas is one of the states in the worst financial situation in Brazil”.

Zema agrees that consumers pay very high prices for fuel: “We are witnessing a rise in oil prices all over the world, with an impact here in Brazil. And it would be fair and prudent for the states not to pass this increase on to the consumer, who already pays for much more expensive fuel than he paid a year or two years ago”.

“It is a relief for the consumer, who is already losing a lot of purchasing power due to inflation. a time for us to join forces. Even freezing the tax, the price will continue to rise, but at least we will be bringing a breath to the miner”, he said.

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