The economic team does not expect federal fuel taxes to be reduced in 2024. The information appears in the budget proposal for next year and has been confirmed by the Federal Finance Secretariat g1.
Some of these tax benefits have already expired, for example for gasoline, ethanol and aviation kerosene. However, the rates will still be reduced until the end of this year Diesel, Biodiesel and for Cooking gas (LPG).
With the end of the liberation these products will have high taxes in early 2024 and if this is passed on, prices will rise for consumers impacting inflation.
- For diesel, the adjustment tends to have a general impact on prices in the economy, as the fuel is used both to transport goods across the country and in public transport.
- The increase in tax on cooking gas, in turn, tends to affect not only the lowincome population, but also the middle class and restaurant prices.
Lula blames the Petrobras president for the delay in lowering fuel prices
The return of federal taxes could result in an increase of up to R$2.18. See the values for each fuel based on data from the government, the Instituto Combustível Legal (ICL) and the Association of Fuel Distributors (Brasilcom):
- Diesel A: about R$0.35 per liter;
- Biodiesel: about R$0.15 per liter;
- Diesel B (Mixture of Diesel A and biodiesel): approx. R$ 0.33 per liter;
- cooking gas: approximately R$2.18 per 13 kg bottle.
The diesel increase occurred gradually throughout the year. Taxes were zero until July, then rose to R$0.11 per liter and then to R$0.13 per liter in October. However, the interim tax increase measure expired without being voted on in Congress, causing tax rates to return to zero by December 31st.
He also talked about it We need an economy that is less dependent on fossil fuels like diesel and cooking gas which will see tax increases at the start of next year.
“The planet is fed up with unfulfilled climate agreements, neglected carbon reduction targets and empty speeches. We need concrete attitudes and practices. How many world leaders are actually committed to saving the planet,” Lula asked at the time.
Impact on public finances
The end of these benefits is already in the calculation of the finance and planning ministries, which are trying to increase revenues in 2024.
The IRS confirmed that the The budget proposal for 2024 takes into account a renewed fuel burden. Ie, If taxes do not rise, the need to raise additional revenue to meet next year’s fiscal target will become even greater.
According to the tax office, that is The reduction in PIS and Cofins rates on fuels resulted in a loss of R$28.7 billion in sales in the first ten months of this year.
In addition to increasing taxes on diesel, aviation kerosene and liquid gas, other measures were also presented to the legislature. Are they: