Government wants approval of fuel PECs before recess

1 month before the congressional recess, deputies aligned with the federal government are running to try to articulate the approval of 2 PECs (Proposals for Amendments to the Constitution) to reduce fuel prices.

The government’s priority is to resolve the fuel issue by voting on PECs”, said the government leader in the Chamber, Ricardo Barros (PP-PR) to the Power 360.

Under the Constitution, legislative sessions must be held by July 17. Parliamentary recess is only suspended if the LDO (Budget Guidelines Law) is not approved.

The maneuver could ease electoral pressure on the president Jair Bolsonaro (PL), which seeks re-election in October. According to the survey PowerDate42% of the population blames the Chief Executive for the rise in prices in Brazil.

Next week, the deputies are expected to analyze the PEC 16, still pending in the Senate, which compensates the Federal District and the States that zero the ICMS (Tax on Circulation of Goods and Services) rate on cooking gas, natural and diesel; and reduced to 12% for ethanol.

The text proposes the transfer of R$ 29.6 billion divided into 5 installments, with the 1st payment made in August. If enacted by the National Congress, the PEC will be valid until December 31, 2022.

The amendment was announced by Bolsonaro on June 6 alongside the Minister of Economy, Paulo Guedes, and the presidents of the Chamber, Arthur Lira (PP-AL), and of the Senate, Rodrigo Pacheco (PSD-MG).

On the occasion, Lira signaled the House’s support for the amendment suggested by the federal government: “It has the sensitivity of the Chamber of Deputies. I think that this initiative advances towards the reduction of inflation rates“, said.

Another proposal that can be analyzed by Members and has already been approved in the Senate is PEC 15, authored by the senator Fernando Bezerra (MDB-PE). The amendment to the Constitution maintains a favorable tax regime for biofuels, such as ethanol, even with changes in taxes on other fuels.

The processing of PECs, however, has a different pace in the Chamber and may take a little longer for approval.

In the lower house, the proposal it needs to go through the Constitution, Justice and Citizenship Commission that analyzes the constitutionality of the matter. Then it goes to the special commission to assess the merits. The 2-round vote in the Plenary is the last step and 308 votes are needed to approve.

According to Barros, the president of the Chamber has been talking with the leaders to reach a consensus on the texts and take the proposals straight to the Plenary.

On the other hand, the opposition leader, Reginaldo Lopes (PT-MG) was against the acceleration of the process and told the Power 360 that it is necessary to discuss the amendment before voting.

fuels and energy

The government’s attempt to mitigate the rise in prices in voters’ pockets was successful with the approval of important projects in the House and Senate.

This week, the Legislature concluded the vote on the project that limits the collection of ICMS, a state tax that makes up the price of most products and services. Taxation is one of the main forms of collection for States.

The proposal classifies fuels, electricity, transport and telecommunications as essential and indispensable items. Thus, it prevents the collection of a rate higher than 17% or 18%.

The text also establishes that States will be plywood if they have a loss of total ICMS collection, without correcting past revenue for inflation.

The project had support de Lira and was heavily criticized by state and municipal public managers, who fear high losses for the public coffers.

According to the CNM (National Confederation of Municipalities), the proposal will cause “an annual loss of approximately BRL 80 billion” for states and municipalities.

For electric energy, the project was also approved that obliges Aneel (National Electric Energy Agency) to return taxes overcharged on the electricity bill.

According to the project’s rapporteur, Joyce Hasselmann (PSDB-SP), the discount on the electricity bill can reach 17% in total, or 5% per month over the years. The text still needs to be sanctioned by Bolsonaro.

The complementary bill 62, of 2021, prevents the collection of ICMS on additional amounts charged in tariff flags. The matter was sent for analysis by the Senate.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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