Fuel importers and distributors ask for ethanol import tax exemption

Fuel importers and distributors in Brazil are preparing to send a letter to an agency of the Foreign Trade Chamber (CAMEX) at the beginning of next week that asks for an exemption from the 20% import tax on anhydrous ethanol, given the low supply of product in the country.

According to a Reuters interview with the president of the Brazilian Association of Fuel Importers (Abicom), Sérgio Araújo, a letter with the demand was sent last week to the minister of Mines and Energy, Bento Albuquerque, and the president of the Chamber, Arthur Lira.

In the document, the companies explain that the exemption will reduce the cost of gasoline by around 18 cents per liter, with favorable impacts for the consumer.

“We are presenting an opportunity for an immediate reduction in the price of gasoline,” said Araújo. “This suggestion is also being sent to all members of GECEX (the CAMEX executive management committee). We are in final preparations, possibly on Monday.

The letter explains that the cut in costs could represent a reduction for the final consumer of around 25 cents per liter of C gasoline, sold at service stations, depending on the tax burden (ICMS) and logistical costs.

The ethanol sector in Brazil suffers from a reduced supply due to crop failure in the center-south. Exemption from the import duty on the input will potentially benefit the United States, the world’s largest ethanol producer.

Source: Money Times

To read the full original article, visit the link:

https://www.moneytimes.com.br/importadores-e-distribuidores-de-combustiveis-pedem-isencao-de-taxa-de-importacao-de-etanol/

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