Federal Court in Brasilia suspends increase in fuel taxes

The decision applies to every country and appeal. The increase in fuel taxes announced by President Michel Temer last week.
25/07/2017 16h51 - Updated 26/07/2017 10h15
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The Federal Court in the Federal District suspended the adjustment of the rates of Social Integration Program (PIS) and Contribution to Social Security Financing (Cofins) on gasoline, diesel and ethanol, announced by the government on Thursday (20).

The judge Renato Borelli, the 20th Federal Court in Brasilia, He understood that the adjustment is unconstitutional, to have been made by decree, and not by bill. to Borelli, the taxpayer "can not be surprised by the non-established collection and / or increased by law", under penalty of being injured in their fundamental rights.

“It is obvious that the state needs revenue to develop activities related to the common good of the community. however, to perform such activity, the State must respect and be attentive to the precepts relating to fundamental rights enshrined in the Constitution”, the judge wrote.

In the decision dated Tuesday (25), Borelli says, according to the Constitution, although the law approved in, the increase in charges could only go into effect after 90 days, and not immediately, as determined by the decree issued by the federal government.

I do not decree, the government withdrew reductions that were implemented on the PIS / Confins previous, resulting, in practice, in a tax increase, or what, according to the federal judge, It would be illegal.

The government is expected to raise an additional $ 10,4 billion with the increase in PIS / Cofins on fuel, in order to be able to meet the fiscal target of a primary deficit of R $ 139 billion this year.

Felipe Pontes – Agency Brazil

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