Chamber approves compensation to states for ICMS losses on fuels

The Chamber of Deputies approved the federal government’s project, which makes it possible to compensate R$27 billion from the Union to states and the Federal District due to the reduction in ICMS on fuels. The proposal goes to the Senate for a vote.

The text was approved in the form of a substitute for the rapporteur, deputy Zeca Dirceu (PT-PR), and also provides for transfers to the Municipal Participation Fund (FPM) and the State Participation Fund (FPE) to recover losses from 2023 in in relation to 2022.

The project has been classified as a setback by entities in the fuel sector. In essence, the text deals with compensating losses of states and the Federal District with Complementary Law 194/2022, which limited the tax burden on diesel, gasoline, cooking gas, among others, by considering them essential goods.

But article 13 of the new proposal provides for the revocation of a rule approved last year in Complementary Law 192/2022 that established the incidence of ICMS on fuels only once (monofasia) and in the “ad rem” modality, that is, in the form of a fixed value per liter.

The change, which came into force on May 1st this year for diesel and cooking gas and on June 1st for gasoline and ethanol, was one of the measures sponsored by the government of Jair Bolsonaro (PL) to contain inflationary pressure in the sector.