ICMS is fixed at BRL 1.22 per liter of gasoline – 03/31/2023 – Market

The states decided to reduce by R$0.23 the value of the new single rate for ICMS on gasoline, which will now be R$1.22. The cut was made after agreement with the STF (Federal Supreme Court) which also establishes new deadlines for the change in the collection of the tax.

Even with the reduction, the new rate should put pressure on the price of fuel at the pumps, since it is still much higher than that currently practiced in most of the country — only Piauí currently charges a higher amount, R$ 1.24 per liter.

In São Paulo, for example, the current rate is R$ 0.90 per liter. That is, if it came into force today, the new ICMS would represent an increase of R$ 0.31 per liter in the price of gasoline at gas stations in São Paulo.

The new rate, however, will be valid only from June 1st. Until then, governments will continue to charge ICMS based on a percentage of the product’s estimated selling price, which is recalculated every 15 days.

The new ICMS model provides for the collection of a single national value in Reais per liter and only from fuel producers and importers.

On May 1st, states will use this model for diesel and cooking gas, also at higher rates than those currently charged.

In the case of diesel, the new single rate of R$ 0.95 per liter would lead to an average increase of 2.1% in the price of the product if it were implemented from this Saturday (1st), as previously foreseen, according to the consultant’s estimate. Dietmar Schupp.

But not all states would have a high: Sergipe, Amapá, Roraima, Pará, Bahia, Piauí, Maranhão and Rondônia now charge a higher value and would experience a drop in the final price.

The current ICMS collection model was criticized by the sector for feeding back price increases at refineries: after the rise in pumps, the states raise the reference price for charging the tax, generating a new transfer to the final consumer.

In addition, they say, it encourages tax fraud with the purchase of fuel in states where the ICMS is cheaper for clandestine sales in those with higher taxation.

The change was approved by Congress with the support of the Bolsonaro government in May 2022, but the states appealed to the STF.