Brazil’s Bolsonaro Vows to Offset States for Fuel Tax Cut

Brazilian government will offset states that accept to cut ICMS tax on diesel and cooking gas to zero, President Jair Bolsonaro announced in a speech at Presidential Palace.

• President also proposed to cut PIS/Cofins and Cide taxes on gasoline and ethanol to zero
• Measures depend on the Congress approval of a Constitutional Amendment
• Exemption and reimbursement to states are temporary and set to be valid until December 31, Economy Minister Paulo Guedes said during the same event
• Government did not disclose proposal’s fiscal impact
  • Govt to use extraordinary revenues that have not yet been included in the budget to pay ...