The Government will extend the measures to mitigate the rise in fuel prices in the next two months, including the rebate in the tax on petroleum products, although with new contours: the weekly updates of the tax end and the value stabilizes in the next two months.
In a statement released this Friday, the Ministry of Finance reports that it will maintain the extraordinary reduction of the ISP during July and August, which was in force only until the end of June. Without renewed fiscal support, as the Observer wrote, prices would skyrocket.
Fuel tax support ends in two days. Without renewal, prices will skyrocket
The Government says that it maintains the ISP discount equivalent to a drop in the VAT rate from 23% to 13%. But when it comes to offsetting the additional VAT collection derived from the rise in fuel prices, there are changes: the value will stabilize in the next two months, thus ending weekly tax updates. The weekly review mechanism of the ISP had the objective of returning VAT plus the income that the State has from the increase in the price of oil.
The Government also indicates that it will keep the update of the carbon tax suspended for another two months. In the accounts of the Executive, “considering all the measures, the reduction in the tax burden will be 28.2 cents per liter of diesel and 32.1 cents per liter of gasoline”. The discount will be reassessed in August.
Government approves support of 17 cents per liter for professional diesel for trucks
There are other, more sectoral measures. The Government had already announced the creation of a support mechanism for professional diesel for heavy goods. Through this mechanism, 17 cents per liter will be reimbursed, up to a maximum of 8,500 liters consumed in July and August as a whole. The reduction and 50% in the Single Circulation Tax (IUC) for category D vehicles is also maintained.
Regarding the passenger transport sector, support for buses and taxis was approved, “in a similar way to those granted in November 2021 and March 2022”, the content of which will be detailed by the Ministry of the Environment.
In these two sectors, goods and passengers, the extension of the 120% increase in the IRC of the cost of fuel is maintained for five years, for those who do not benefit from professional diesel, and the flexibility of the payment of tax obligations (VAT and IRS and IRC withholdings at source).
And for the agricultural sector, the ISP discount will increase from 3.4 cents per liter of agricultural diesel to six cents per liter, for a period of two months. These supports will also be explained in more detail by the Ministry of Agriculture.
Source: Observadora
