Author: Marise Lugullo (Report), Paulo Cesar Santos (Edition)

Source: Agência Câmara, 04/06/2008

The president of the Special Tax Reform Commission, deputy Antonio Palocci (PT-SP), defends that Cide-Combustíveis should not be part of the new value added tax - the Federal VAT, provided for in the tax reform proposal. According to the government's proposal, the new tax would incorporate, in addition to Cide, PIS, Cofins and the contribution on the payroll for Salário-Educação. According to the deputy, the initiative to simplify federal taxes in a single tax is good, but he believes that Cide played an important role in improving the quality of taxation in the fuel sector, helping to reduce tax evasion.

“Cide has different characteristics. It allows for adjustments when there is price pressure. It allows to adjust the values ​​to reduce impact for the consumer ”. This possibility of adjustment that the contribution has, according to him, the IVA-Federal cannot have. “As fuel has this particularity, it may be more appropriate to maintain Cide's taxation for fuels and not VAT-Federal.”

The rapporteur of the proposal, deputy Sandro Mabel (PR-GO), admits evaluating Palocci's suggestion, but recalls that Cide is another tribute. He believes that incorporating Cide to IVA-Federal will help in simplification. "So, I'm measuring the pros and cons, but if I were to decide today, from what I have, I would keep Cide within the IVA-Federal."

In a joint hearing on Wednesday of the Mining and Energy and Economic Development, Industry and Commerce commissions of the Chamber, deputy Antonio Palocci questioned the president of Petrobrás if it would be appropriate to end Cide. José Sérgio Gabrielli defended the maintenance of the tax, as he considers it correct, since the rate does not vary.