The Minister of Economy, Paulo Guedes, was not satisfied with the presentation of a Proposal for a Constitutional Amendment (PEC) to review the price of fuels through tax waivers.
According to information obtained by CNNthe minister gathered his economic team on Thursday (3) and made an outburst about the proposal, which was prepared by an ally of the Minister of the Civil House, Ciro Nogueira (PP), and the president of the Chamber, Arthur Lira (PP -AL).
A person close to the minister said Guedes is upset, but is not going to leave the government.
“I stay to fight until the end, I fight for my convictions, I don’t leave”, the minister would have said.
The minister’s dissatisfaction is due to the fact that the PEC uses mechanisms to make gasoline cheaper that will directly impact ethanol consumption, which would suffer from the lack of competitiveness caused by weak demand.
“Guedes defended what President Bolsonaro said over the weekend, a restricted PEC to take taxes off diesel. However, the text that is in the Chamber encompasses diesel, gasoline and gas”.
A Guedes assistant even said that the text “is the government’s biggest mistake so far”.
According to sources from the Ministry of Economy, Guedes was not even consulted about the content of the proposal.
In the accounts of the Economy, the exemption on diesel, something that the minister was in agreement, would generate a loss of revenue in the order of R$ 18 billion.
However, the way the PEC is written, if it is approved, losses could reach R$ 54 billion.
In addition, there is a fear that, during its course in Congress, amendments will be included in the text that will make the exemptions also reach energy tariffs, which could cause losses of more than R$ 70 billion.
According to the analyst CNN Caio Junqueira, President Jair Bolsonaro (PL) only called Guedes to inform him of the decision when the text had already been written. The minister would then have expressed disagreement with the proposal, but it was too late.
Source: CNN Brasil
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