ICMS is the acronym for Tax on Circulation of Goods and Services, it is a tribute that falls on the movement of products in general in the country.
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Fuel is one of those goods that suffers from tax collection and is reflected in the price we pay at gas stations. But then, does zeroed ICMS reduce fuel prices? That's what you'll see now in this article!
ICMS and fuel prices
The price of fuels has been scaring the Brazilian population more and more. And then it became a big problem for the rising inflation of the year 2021, making citizens feel the impact in their pocket.
Furthermore, the growth in the value of fuels has not only affected vehicle owners. But also in the freight price to transport goods to their final destination, since the main delivery route in Brazil is still the road system, dependent on gasoline, ethanol and diesel.
Due to the fact that the price is scaring Brazilians so much. The National Council for Finance Policy (CONFAZ) opted to zero the ICMS on the value of fuels, in an attempt to curb the progressive increase in prices at gas stations, but the decision will only remain valid until January 31, 2022.
However, even zeroing the ICMS, fuel prices will not decrease. Well, this tax is not responsible for the high value of gasoline, ethanol and diesel. The measure was taken only to alleviate future increases, but does not preclude possible readjustments!
So what justifies the increase in fuel prices?
Three factors are responsible for influencing the increase in fuel prices. The first is the dependence that Brazil has on the road system, the second is the lack of variety in the energy matrix and, finally, the high dollar.
The dollar has a major impact on prices within Brazil, as the value of gasoline is linked to the US currency, since our country needs to import gasoline, since it is not capable of refining all the oil extracted in the territory!
So, now that you know if the zeroed ICMS decreases the value of fuels. Take the opportunity to forward this article to that friend of yours who would also like to know.
