AM Government keeps one of the lowest ICMS rates in Brazil

Tax on Goods and Services (ICMS) (Reproduction/Internet)

September 1, 2021

21:09

Victória Sales – from Cenarium

MANAUS – The Government of the State of Amazonas keeps one of the lowest rates of Tax on the Circulation of Goods and Services (ICMS) in the country, with only 25% on fuel prices. Besides the State, Amapá, Roraima, Acre and Mato Grosso, which are part of the Legal Amazon, kept the same percentage. The President of the Republic, Jair Bolsonaro (no party), has used the argument of tax collection to hold governors responsible for the increase in fuel prices.

Price of ICMS charged by the States in Brazil (Catarine Hak/Cenarium)

Sharing the same percentage of ICMS, on a national level, are Santa Catarina and São Paulo. The numbers were disclosed by the Valor Econômico website based on information from the National Petroleum, Natural Gas, and Biofuels Agency (ANP) and the Ministry of Mines and Energy, which indicate that, in April 2021, the share of the price charged by Petrobras is greater than the percentage of the Tax on the Circulation of Goods and Services (ICMS), which reaches almost 40%.

The tax amounts return to the population of the state’s municipalities in the form of services, such as, for example, in the maintenance of Basic Health Units (UBSs).

The ICMS on fuel in the Amazon represents 20% of the tax collection, according to economist Denise Kassama. According to her, the price of gasoline has not been affected exclusively because of the ICMS, as was affirmed by the President of the Republic, but because of the price charged by Petrobras.

“The tax issue follows the values for the acquisition of inputs and sale of the product. It is evident that the current pricing policy practiced by Petrobras, based on the international market, increases the cost of the input, but the data is not public”, she highlighted.

“Greed”

On Monday, 30, Jair Bolsonaro again blamed the rise in fuel prices on the governors. In an interview, the president said that the problem for this increase has been due to “greed”. “The price is not high, what weighs is the ICMS, the big problem is greed. It is a crime what happens, an explicit assault on the consumer”, said the president.

According to Bolsonaro, if you reduce the percentage of ICMS, consumer costs will decrease. The state representatives replied claiming that the “blame” is the readjustments made by Petrobras, with influence from the federal government. Also according to the ANP, the price of gasoline reaches R$ 7 in some states and R$ 6 in some cities, such as Manaus.

Denise pointed out that Bolsonaro blamed the ICMS, but forgot about the other requirements that are also imposed by the company. “There is no information about the cost of inputs, operational costs or any other information that justifies the percentage of 34%, or even about the need for the cost of alcohol to be at this percentage. By attacking the governors, the federal government only increases the political war and the population ends up being penalized”, she highlighted.