Mayors will monitor fuel prices with ICMS ceiling

With the approval of the limit for the Tax on the Circulation of Goods and Services (ICMS) on fuel, Brazilian mayors announced that they will monitor prices at stations across the country. The expected loss is BRL 80 billion in collections from cities and states.

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The decision was announced through the National Confederation of Municipalities (CNM). The monitoring wants to know if in fact the 17% ceiling will result in a reduction in the price of a liter of fuel. Otherwise, the understanding is that only states and municipalities will be harmed.

Mayors will monitor the posts, says CNM

The ICMS ceiling is a federal government proposal. It is the great attempt by Jair Bolsonaro’s team to reduce fuel prices in an election year.

Therefore, what the CNM wants to know is who will pay the bill for the ICMS ceiling. “In order to verify if this reduction will actually reach the Brazilian population, the CNM called on municipal managers to monitor the prices practiced at the gas stations before and after the rate change”, says the statement from the Confederation.

This is because, in the CNM’s view, the government’s proposal is nothing more than an “electoral measure”. In addition, the Confederation pointed out that the loss for states and municipalities must be billions. About R$ 80 billion per year. So far what is known is that the reduction in bombs will not be immediate.

First, because the distributors have fuel stocks. The text was approved by the deputies and now went to the sanction of President Jair Bolsonaro.

Despite the ICMS ceiling, the measure is not able to contain the soaring price of fuel. That is, the liter may continue to rise, due to the value of a barrel of oil on the international market.