Brazil drops PIS/Cofins tax exemption on ethanol as of January 1

In Brazil, the National Federation of Fuels and Lubricants (Fecombustíveis) announced that as of January 1, the PIS / Cofins exemption on ethanol will be withdrawn. The end of the exemption is due to the loss of validity of the benefit provided by Law No. 12,859, of 2013, which gave importers and producers of ethanol a credit for the deduction of amounts during their commercialization. The credit established in the law corresponds to BRL21.43 per cubic meter marketed for PIS and BRL$98.57 per cubic meter marketed in the case of Cofins.