House President Arthur Lira (PP-AL) said on Tuesday (7) that the plenary session of the House of Representatives should review two proposals for constitutional amendments aimed at lowering fuel and energy prices before the parliamentary recess. According to the Federal Constitution, the National Congress is in recess from 18 to 31 July.

Lira’s expectation takes into account the forecast that PLP (Project Supplementary Law) 18/2022 will be voted in the Senate next week, which limits the application of the ICMS (Goods and Services Turnover Tax) rate to goods and services. fuel, natural gas, electricity, communications and public transport.

Speaker of the House, Deputy Artur Lira, will give priority to PECs to reduce fuel consumption – Photo: Marina Ramos/Câmara dos Deputados/ND

“We are waiting and appealing to the sensitivity of the Federal Senate to study, discuss and vote on this issue. It is unlikely that we will have another solution than respecting the independence of the chambers, but voting for the approval of this PLP, ”Lyra said.

abbreviation ICMS

In one of the PECs, states will be allowed to zero out the ICMS levied on diesel and LPG (kitchen gas). The proposal was announced on Monday (6) by President Jair Bolsonaro along with Artur Lira and Senate President Rodrigo Pacheco (DEM-MG). Through this measure, state governments will receive financial compensation equivalent to revenues that will no longer be collected.

Promotion of the proposal requires PLP 18 approval in the Senate, making fuel services mandatory and capping the ICMS fee to 17%. Under the government proposal, it would be possible to compensate states that reduce taxes on diesel and cooking gas to the limit of necessity, that is, up to this limit of 17%. This bill was approved by the House of Representatives on May 25.

According to Arthur Lear, the government must submit another PEC to ensure the competitiveness of ethanol, as it will be exempt from federal taxes on gasoline. However, the deputy did not elaborate on the proposal.