Brazil is discussing a tax step that directly affects the transportation economy: the Ministry of Finance has proposed to the states to waive the ICMS tax on diesel fuel imports. According to Reuters, the federal government is ready to compensate half of the state revenue losses for the period up to May, and further discussion is scheduled for a meeting on March 27.
Diesel in Brazil is a strategic resource for logistics, because transportation across the country relies heavily on motor transport. Reuters notes that about a quarter of diesel consumption is accounted for by imports. When the price of diesel increases, this quickly translates into freight rates, and then into retail and business purchase prices.
At the same time, the authorities are strengthening their control over the market. The publication talks about actions to reduce federal taxes and measures against price abuse through real-time monitoring of sales invoices using the ANP regulatory system.
For foreign trade, the effect will manifest itself through the cost of shipping to and from ports, plus the price of imported shipments of fuel and petroleum products. For cargo owners, this is a signal to review the logistics budget for the quarter and update conditions with carriers based on the actual cost of fuel, so as not to catch cash gaps with sudden jumps.
