Rodrigo Ibarrola
The idea that eliminating the Selective Consumption Tax (ISC) on fuels will reduce the price of fuels derived from oil has been widely spread, especially in the session of the Chamber of Deputies on March 24. This is under the mistaken premise of estimating the impact of the tax by deriving it from the retail price by applying the nominal tax rate. However, the tax regime does not work in the same way for the products we are referring to.