August 18, 2022
Zema announces reduction in ICMS;  Decree that goes into effect today (1/7) - Politics

Zema announces reduction in ICMS; Decree that goes into effect today (1/7) – Politics

Governor Romeo Zima said he will sign the decree today (1/7) (Photo: Leandro Couri/EM/DA Press)

Governor Romeo Zema (Novo) announced Friday (1/7) that he will sign the decree reducing the Goods and Services Circulation Tax (ICMS) on petrol, electricity, telephone and internet services in Minas Gerais.

According to the executive branch, the decision to reduce all taxes to 18% as of Friday. “Gasoline tax is 31%, electricity 30%, telecom 27%. It will all rise to 18% in our state as of today,” Zima wrote on his social media.

The state tax cut happened after the bill passed by President Jair Bolsonaro (PL), on June 23, that limits ICMS. In the enacted law, states cannot impose a higher rate, which can range from 17% to 18% depending on the state.

Despite the decision, the State governments appreciate the loss R$ 83 billion was collected with the approval of the project, which may affect the resources of investments in other areas.
Zima was already appreciating the tax cut, but the governor feared the effect on the money. In Minas, it is reduced From R$8 billion to R$10 billion in the state’s annual pool.

“In the case of Minas Gerais, which has only recently updated the payroll, many municipalities have very tight budgets, and ICMS pays for health and education for the municipalities,” the governor said, in an interview at the Future Farmcia Unit de Minas, in Belo Horizonte, Last Tuesday (28/6).

President Bolsonaro has been lobbying for the law to be passed for some time. At one point, the CEO promised the states they would cut taxes, but the president objected to the text.

Cheapest petrol?

For consumers, this is good news, says economist and Mercado Mineiro coordinator Feliciano Abreu. The specialist says that it is still too early to estimate the drop in fuel prices and notes that it will also depend on gas stations, but depending on federal taxes, about 0.68 R$. “ICMS should wait, but I think it’s in the same range,” he points out.

“We were already following the reduction because of the federal taxes, which are PIS, Cofins and Cide, and now we add to the reduction in ICMS, there will be a good reduction for the consumer, right? An important reduction, yes,” the specialist highlights.

Abreu warns consumers to monitor prices and charge gas stations for depreciation at supply pumps. He says the reduction will not be immediate, as there is still plenty in stock, but it is necessary to follow it.

And by ranks, the issue of federal taxes continues to slip. So, even actually getting cheaper rates because of the ICMS also takes some time, but this week we’re really going to have big discounts,” he highlights.

The specialist highlights how important the fees are so that the prices really come down. “Because otherwise it would be this reduction in the stations’ profit margin, which is not going to happen because the competition is also intense between stations. So, the outlook is very good right now, right? What we have and what we can get at the moment,” he says.