governors ask Congress for support for agreement with the Union

A group of governors asked the presidents of the Chamber of Deputies, Arthur Lira (PP-AL), and of the Senate, Rodrigo Pacheco (PSD-MG), this Tuesday (14), for support in order to close an agreement with the Union to compensate the states of losses caused by the partial exemption of ICMS on fuel and essential services, last year.

The request comes six days after the government proposed a compensation of BRL 22 billion, below the BRL 45 billion that the governors say they lost in revenue, citing a study by the National Committee of Secretaries of Finance of the States and Federal District (Comsefaz) .

“The Comsefaz study shows R$ 45 billion. This is what the study by our finance secretaries presents. Of course, there are differences in relation to the calculation made by the National Treasury”, said the governor of Piauí, Rafael Fonteles (PT), in a report to Politics 360.

Because of this, the governors try to articulate with Congress a compensation of at least R$ 30 billion. “We are already taking the initiative to talk with the Legislative and Judiciary branches so that this eventual agreement between the States and the Union is also endorsed by the other 2 Powers”, completed the Piauí native.

“The deadline is for yesterday, but the deadline we are working on now is March, right after Carnival”, said Fátima Bezerra (PT), governor of Rio Grande do Norte.

In exchange, the group had the answer that Lira should consult party leaders about the deal under negotiation. In addition to Fonteles and Fátima, the governors of Amazonas, Wilson Lima (União Brasil); from Goiás, Ronaldo Caiado (União Brasil); the interim of the Federal District, Celina Leão (PP); and the deputy governor of Tocantins, Laurez Moreira (PDT).

Actions in the STF question exemption from ICMS

In addition to Congress, the governors have also sought out the ministers of the Federal Supreme Court (STF), last week, where there are lawsuits in progress contesting the legality of the complementary laws approved last year that determined the partial exemption of ICMS for products and services considered essentials, such as fuel, electricity and communications.

Last Friday (10), Minister Luiz Fux authorized the resumption of charging the tax on electricity transmission and distribution tariffs. The magistrate responded to a Direct Action of Unconstitutionality (ADI) against the end of ICMS collection.

The return of the tax will increase the electricity bill and represents yet another pressure on inflation, which from the beginning of March should also reflect the impacts of the return of the collection of federal taxes on gasoline, ethanol, vehicular natural gas (CNG) and aviation kerosene.

In gasoline, for example, the full resumption of PIS and Cofins should cause a price increase of at least R$ 0.69 per liter.