By Camila Anauate, O Estado de S. Paulo - 13/04/2005

Gas stations caught selling adulterated fuel will have the state registration in the registration of the Tax on Circulation of Goods and Services (ICMS) revoked. Yesterday Governor Geraldo Alckmin signed the law and presented two projects that will be sent to the Assembly: one for the confiscation of irregular fuel, which will be reprocessed and used by the police, and the presumption law, against the misuse of solvents.

"The cassation law applies to everyone in the fuel chain, be it distributor, transporter or retailer," explained Alckmin. The objective is to prevent the station that acquires, distributes, transports, stores or resells adulterated fuel from working again. The owner of the revoked establishment will not be able to work for five years in this field or apply for a new company registration in this activity.

For the president of the São Paulo State Petroleum Derivative Trade Union (Sincopetro), José Alberto Gouveia, the law will bring moralization and credibility to the sector.

According to the Finance Secretary, Eduardo Guardia, for the law to enter into force, a decree must still be issued. Meanwhile, Operation Eye on the Bomb will be suspended to avoid confusion. "Next week, we will continue the operation with the effect of forfeiture." The operation, launched in December, has already inspected 488 stations and found 173 with irregularities. In addition, Operation Arrocho, focused on distributors, has already seized 2,1 million liters of irregular fuel.

The governor vetoed the amendment proposed by deputy Jorge Caruso (PMDB), which established that posts located inside supermarkets had their own registration in the ICMS taxpayer register. “Today they benefit from the tax substitution that the common post cannot do. It is unfair competition, ”said Caruso. Guardia said the veto was due to a legal issue. "You cannot mix the bill that cancels the state registration for adulteration of fuel with the bill that changes the general rule of the ICMS."