States decide to increase gasoline tax in 2024

The state tax on gasoline will be adjusted next year. In a joint decision, the states decided to increase the single ICMS rate from R$1.22 to R$1.3721 per liter from February 1, 2024 – an increase of R$0.15 per liter, approximately .

The decision of the National Council for Finance Policy (Confaz), which brings together the state finance secretaries, is dated the 20th and was published this Thursday (26th) in the Official Gazette of the Union.

Confaz also raised taxes on diesel, biodiesel and cooking gas. The tax rate on diesel and biodiesel will increase from R$0.9456 to R$1.0635 per liter (an increase of almost R$0.12).

In the case of LPG, the tax will rise from R$1.2571 to R$1.4139 per kilo (about R$0.16 more).

The ICMS of R$1.22 per liter of gasoline has been in force since June 1st. The rate, equal in all states and fixed in reais per liter, was determined by Complementary Law 192, approved last year.

Until then, the tax varied depending on the federation unit and corresponded to a percentage of the sales value of gasoline – which means that, with each increase in the price of fuel, the absolute value of the tax (in reais) also increased.

The single rate was seen as an advance in terms of tax transparency and stability. However, it caused an increase in taxation the first time it was established.

Report from People’s Gazette showed that, when it came into force, the new single ICMS was higher than that practiced in 24 of the 27 units of the federation.