Brazil sugar and ethanol tax credit to expand for the second time this month as elections approach

September 11, 2014 |

In Brazil, the country will expand a tax credit to sugar and ethanol producers to spur demand for biofuel for the second time this month. Under the program, known as Reintegra, producers will receive a tax credit worth 0.3 percent of their exports.

With ethanol demand in Brazil dropping year after year, President Dilma Rousseff has been criticized as she has attempted to control inflation by blocking state-run Petroleo Brasileiro SA from raising gasoline prices.

Ethanol policies continue to cause political tension in Brazil with Marina Silva posing a serious threat to President Rousseff as elections are set for less than a month from today. The Digest reported just last week on the candidates and whose policies spell success or failure for the ethanol industry.

More on the story.

Category: Policy

Thank you for visting the Digest.