In Brazil, the government has decided to not renew PIS/Cofins tax breaks at the pump for ethanol following their expiry in December. The effect will be to encourage mills to produce more sugar because ethanol will be less attractive at the pump. The country’s lack of financial strength is the reason for ending the tax exemption that was brought into effect in 2013. The tax break equates to about 4 cents per liter at the moment.
Category: Policy