Lula ministers meet on Tuesday to determine the burden of re-burdening gasoline and ethanol Policy

President Luiz Inacio Lula da Silva (PT) will meet on Tuesday (28) with government ministers and the president of Petrobras to discuss fuel reloading.

the Prime Minister of the Civic House, Rui Costa; Finance Minister Fernando Haddad. and Mines and Energy Minister Alexandre Silvera. and Petrobras President Jean-Paul Prats.

The tax break for gasoline and ethanol ends Tuesday and the government still doesn’t know if it will tax again.

The decision includes an agreement between the economic wing of the government, mainly represented by Minister Fernando Haddad, and a group represented by the national chairman of the Labor Party, Jesse Hoffman, which opposes the resumption of fuel taxes.

Hoffman said on Friday (24) that returning to taxing fuel now “fails to deliver on campaign commitments.” “We are not opposed to taxing fuel, but doing so now penalizes the consumer, leads to more inflation, and fails to fulfill the campaign commitment,” he said on a social network.

Despite the announcement, the Ministry of Finance did not clarify, however, what the percentage of the tax was nor the value in riyals per liter of fuel. He only added that fossil fuels, such as gasoline, would be more burdensome.

The file informed the decision even after Minister Fernando Haddad said on Monday that there would be a new meeting to discuss resuming the collection of federal taxes on gasoline and alcohol. On Monday morning, Lula met with the two ministers, Rui Costa and Haddad, as well as the Petrobras president, in a meeting that ended without announcing a decision.

Understand the exemption

President Lula only extended until February 28 exemption (reduction to zero) from federal taxes on gasoline, alcohol, aviation kerosene, and automobile natural gas (CNG).

The original measure to exempt these fuels was taken the previous year by former President Jair Bolsonaro (PL) to lower fuel prices. That brings tax collection back on the first Wednesday in March.

The economic wing relies on the return of tax collection to increase collection and reduce the more than R$200 billion gap expected for government accounts this year.

In the case of diesel fuel and cooking gas, federal taxes will be waived through December 31.