Brazilian government approves new alternative tax-free financing for ethanol investments

In Brazil, Reuters reports that the government has agreed to allow sugar and ethanol companies to raise funds for boosting ethanol production through income tax-free notes in an effort to boost investment as part of the RenovaBio policy. The new rule signed during an ethanol conference in Sao Paulo this week will ensure those who buy the investment notes from sugar and ethanol companies won’t be charged income tax on their yields. As public credit is becoming more scarce, the mechanism is meant to allow for access to alternative sources of finance.