The Brazilian Ministry of Finance has proposed a tax exemption on the Import Tax of Goods and Services (ICMS) for diesel imports, offering federal compensation to the states that would cover 50% of the costs involved. The estimated cost for the federal government and the states is around R$ 3 billion for the duration of the measure, which is set to last for two months. This initiative aims to alleviate supply shortages of diesel reported by some states, ensuring better availability in the domestic market.

During a virtual meeting with state finance secretaries, the proposal was presented by the ministry's executive secretary, Dario Durigan. The exemption is designed to address immediate supply issues, particularly as some regions have reported a lack of diesel at fuel stations. The measure will be directed primarily towards diesel importers to facilitate imports and stabilize prices within the country.

Durigan highlighted that while the initial estimates place the expense at R$ 1.5 billion per month for both the federal and state governments, these numbers may still change as state secretaries requested more time to review the proposition. The initiative underscores the government's response to fuel supply challenges and aims to preempt further shortages, ultimately supporting both consumers and businesses reliant on diesel fuel.