The current stance among Brazilian governors is to reject the federal government's proposal aiming to eliminate the ICMS tax on diesel imports. The proposal was introduced on April 18, suggesting that the tax should be zeroed by the end of May, with the federal government covering half of the expected revenue loss. However, many governors, including Eduardo Leite from Rio Grande do Sul, have voiced concerns about potential negative effects on their states' budgets, emphasizing the necessity of maintaining revenue from this tax.

At the core of the discussion is a counterproposal by Leite, which is expected to be debated in the forthcoming meeting of the National Treasury Policy Council. The federal government's proposed tax exemption could lead to an estimated loss of R$ 3 billion per month for states, with only R$ 1.5 billion monthly to be compensated by the federal government. Treasury secretaries from states like Goiás and São Paulo express doubt regarding the feasibility of foregoing this significant revenue, especially during a period of budgetary constraints caused by rising fuel costs and economic challenges.

This ongoing negotiation between state and federal governments highlights the complex dynamics of fiscal policy in Brazil, particularly how revenue generation from fuel taxes directly impacts public services and state budgets. The outcome could set a significant precedent for future agreements between states and the federal government, reflecting on the balance between economic relief measures and fiscal responsibility.