Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Brazil Said to Be Readying Tax Breaks for Ethanol

Brazil is preparing tax breaks that may channel more of the country’s sugar cane into ethanol production to meet additional demand, two people with knowledge of the plan said.

Proposed changes to the ethanol tax system include lower payments and the possibility of converting the amount paid into credit, said the people, who asked not to be named because the plan hasn’t been made public.

Implementation of the changes is in the hands of President Dilma Rousseff for a final signature, one of the people said. The decision may be announced before sugarcane start getting to mills, in April, one of the people said.

Producers of the biofuel pay taxes of 0.12 real (6 cents) a liter. Energy Minister Edison Lobao told reporters Feb. 4 that ethanol tax cuts were under consideration.

Brazil is expected to harvest 532.3 million tons of sugar cane in the 2012-13 crop season, 7.9 percent more than the previous year, industry group Unica said on Feb. 26. Sugar output will reach 34 million tons, while ethanol output will be 21.3 billion liters, Unica said.

Mills may produce more ethanol to help meet the additional demand caused by the increase to 25 percent of the amount of ethanol blended into motor fuel, which will take effect May 1, Lobao said Jan. 30.

The new blend rate was formally announced today in Brazil’s official gazette and will help Petroleo Brasileiro SA cut losses from importing gasoline.

Sugar may need to drop further to spur millers in Brazil, the world’s largest producer, to make more ethanol at the expense of the sweetener when the 2013-14 season starts there in April, according to a Feb. 14 Macquarie Group Ltd. report.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.