Brazil is in a period of economic instability, in light of the impacts of the COVID-19 pandemic. Increased inflation has caused uncertainty in market prices, especially in the fuel sector. To contain this instability, the federal government has taken a series of legal tax measures aimed at curbing inflation and preventing price instability from reaching end consumers.
Transactions involving fuels are mainly taxed by social contributions on revenues (PIS and Cofins), charged by the federal government, and by state VAT (ICMS), charged by the states.
In March 2022, the federal government enacted Supplementary Law 192/2022 (amended by Supplementary Law 194 of June 2022). This adjusted the taxation levied on transactions involving fuel, redefining the applicable rates and changing the rules on the calculation and payment of taxes on these products.
