Brazilian hydrous ethanol tax still under negotiation

In Brazil, the decision to reinstate a tax on hydrous ethanol at the mill gate from January 1 hasn’t yet been decided as the government is still in talks with the industry, but even if a decision is reached it won’t be before the beginning of the year. Mills have already priced in the tax for deliveries as of January 1 in expectation that the rule will be implemented eventually. The industry is working to get the government to find a solution that won’t increase inflation nor negatively impacts ethanol demand.