Brazilian Government loses R10, 6 billion in tax reduction CIDE – Contribution of intervention over economic domain of petroleum fuels

Over the past six years, the government has failed to raise at least $ 10.6 billion in Contribution for Intervention in Economic Domain (Cide) fuel. The data consists of a survey made by the IRS, obtained by the 'State'. The result of the federal revenues shows that the total collected Cide fell to 40.8% in February, compared with the same month last year. The federal government has lowered the rates of Cide to avoid high fuel prices at the pumps. The oil price is rising on the international market and the government prefers to reduce the taxation to avoid the transfer of high-end price for the derivatives as a way to reduce the pressure on inflation.In October last year, for example, the value of the tax fell from R $ 0.192 per liter for R $ 0.091 per liter. For diesel, the drop was from $ 0.07 per liter to R $ 0.047 per liter. These tax cuts remains in force until the end of June 2012. On occasion, the Ministry of Finance reported that the goal was to minimize the extent of fluctuations in international oil prices. Thus, the cut on Cide tried to maintain stable prices for consumers. Not coincidentally, the new president of Petrobras, Maria Foster, has asked the government permission to raise the price of gasoline, as revealed to the State Minister of Mines and Energy, Edison Lobao, in an interview published on Sunday. He added that the issue is being analyzed.Source:Estadão, Translation EGE