According to Brazilian sugar seller Raizen's vice president Pedro Mizutani, the country is set to reduce ethanol taxes by nearly 80%, from BRL 120/m3 ($62/m3) to BRL 25/ m3 ($13/m3), with a reduction in ethanol's social security tax possibly to follow. The cut is intended to alleviate strain on domestic ethanol producers, for whom deep debt and subsidized Brazilian petrol prices have in recent years created a suppressive industrial atmosphere. The tax cut is expected to increase ethanol production margins by BRL 30-40/m3 ($16-21/m3), which the Brazilian government hopes will lead to lower ethanol prices for domestic consumers, which would subsequendy alleviate the country's fuel inflation issues.
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