Treasury confirms complete reencumbrance of fuel taxes

The advisory of the Ministry of Finance informed this Monday (27th), that the complete reencumbrance of PIS/Cofins on gasoline and ethanol is confirmed. The billing model, with a defined percentage for each item, has not yet been announced, but the department guaranteed that there will be no loss of revenue and the R$ 28.9 billion increase in revenue is guaranteed.

According to the press office, the model under discussion provides for a greater burden on fossil fuel, such as gasoline, than on biofuel, such as ethanol, which is more environmentally sustainable.

The Minister of Finance, Fernando Haddad, should speak to the press on the matter after the meeting between the Executive Secretary of the Ministry of Finance, Gabriel Galípolo, and the President of Petrobras, Jean Paul Prates.

Galípolo went to Rio de Janeiro to discuss precisely the tax restructuring and the percentages charged on gasoline and alcohol.

The decision to increase taxes represents a victory for Haddad, who had been facing a “frying” process by the government’s political wing.

Allies of President Luiz Inacio Lula da Silva defended the extension of the exemption from federal taxes on gasoline and ethanol to avoid a spike in inflation and a possible loss of popularity for the Chief Executive.

The provisional measure issued on January 2, which established the extension of the exemption approved during the government of former President Jair Bolsonaro (PL), expires on Tuesday (28).

On Friday (24), the national president of the PT, Gleisi Hoffmann, wrote on Twitter that “we are not against taxing fuel, but doing so now is penalizing the consumer, generating more inflation and failing to fulfill a campaign commitment”.