March 18th, 2022


1. Elections: poll shows Lula in the lead with 44% against 26% for Bolsonaro

According to a poll by Quaest Consultoria published this week, former President Luiz Inácio Lula da Silva (PT) is leading in the polls with 44% of voting intentions against 7 other potential presidential candidates. Current President Jair Bolsonaro (PL) is in second place, with 26% of voting intentions. Former judge Sergio Moro (Podemos) and Ciro Gomes (PDT) are tied in third place, each with 7% of voting intentions.

Jota: Quais as principais razões para os eleitores votarem em Lula ou Bolsonaro:
UOL: Genial/Quaest: Lula lidera com 44%; Bolsonaro tem 26%; Ciro e Moro empatam
CNN: Pesquisa Quaest/Genial: Lula tem 45% e Bolsonaro, 25%; Ciro tem 7% e Moro, 6%

2. Bolsonaro approves changes in ICMS fuel tax rule

On Friday (3/10), the Complementary Law 192/2022 was sanctioned by the President of the Republic, Jair Bolsonaro, without vetoes. The law changes the tax scheme on fuel prices to a single aliquot in nine Brazilian states, including São Paulo and the Federal District. According to members of the National Committee of State Secretaries of Finance (COMSEFAZ), by setting the average aliquot at 15.6%, states that charge a smaller tax will have to increase prices. Affected states and the Federal District could be planning on presenting a case to the Federal Supreme Court (STF) claiming that the law is unconstitutional.

Estadão: Mudança no ICMS do diesel pode elever imposto em novo Estados e no DF
Correio Braziliense :Bolsonaro sanciona lei que prevê cobrança única de ICMS sobre combustíveis
Jota: Estados Estudam ir ao STF contra mudança no ICMS dos combustíveis

3. Higher inflation rates in February affect every social class in Brazil

In February, inflation rates increased, resulting in every social class being affected by price increases. According to a study published this week by the Institute for Applied Economic Research (IPEA), the accumulated inflation for the last 12 months affected the income of the lower classes by 10.9% and by 9.7% for people with higher incomes. Among those with higher incomes, the increase in school-related costs was the most significant, while food and beverage prices had a greater impact on the finances of people with lower incomes.

Folha de S.Paulo: Inflação não poupa ninguém em fevereiro, indica Ipea
CNN: Inflação de alimentos foi a que mais afetou baixa renda em fevereiro, diz Ipea
Agência Brasil: Inflação acelera para todas as faixas de renda em fevereiro

4. Senate postpones Tax Reform yet again

The Senate’s Constitution and Justice Committee again postponed voting on Constitutional Amendment Proposal 110, a tax reform that promotes a board reform in the tax system by unifying taxes. The bill, presented by Senator Roberto Rocha (PSDB-MA) did not receive support from senators, even though it was endorsed by Senate President Rodrigo Pacheco (PSD-MG). Leaders of MDB requested the postponement of the vote, criticizing issues in the bill such as taxing books, the tax load for healthcare and education companies as well as regional tax incentives.

Folha de S.Paulo: Reforma tributária tem votação adiada na CCJ do Senado por falta de consenso
Estadão: Reforma tributária do Senado não reduz carga de impostos, mas incentiva crescimento, diz CNI
G1: CCJ do Senado adia mais uma vez votação da PEC da Reforma Tributária

5. Brazilian executives more worried about sustainability than global average

According to a global study published by consulting company Russell Reynolds Associates, Brazilian executives are more concerned about sustainability issues than the global average. The study shows that 50% of leaders in Brazilian companies hope that sustainability practices are incorporated in their business strategies within the next five years. In other countries, an average of 39% of leaders shared these goals, demonstrating that Brazil is leading this transition to sustainable business.

Estadão: Executivos brasileiros são mais preocupados com sustentabilidade que a média global, diz pesquisa