Government publishes measure that eliminates import tax on ethanol, margarine and coffee

The decision of the Ministry of Economy to zero import tariffs on ethanol and six types of food – coffee, margarine, cheese, soy oil, sugar and pasta – was published in the Official Gazette on Wednesday (23). , until the end of the year. The measure takes effect from the date of publication.

For the Brazilian Association of Fuel Importers (Abicom), the novelty has the potential to bring price reductions to consumers. For the director of FGV Transportes, Marcus Quintella, effects should not be felt in the short term.

Last Monday (21), the Foreign Trade Secretary at the Ministry of Economy, Lucas Ferraz, said that estimates show that the reduction to zero of the ethanol tariff could reduce the price of a liter of gasoline by R$ 0.20 cents. at the posts.

This is because, in Brazil, 27% of the composition of a liter of gasoline must be anhydrous ethanol.

According to data made available by the National Agency of Petroleum, Natural Gas and Biofuels (ANP), the average prices of a liter of gasoline and ethanol in the country are R$ 7.26 and R$ 4.93, respectively.

Experts interviewed by CNN evaluated how the decision taken by the government can affect the consumer. According to the director of FGV Transportes, Marcus Quintella, there is no possibility of reducing the price of gasoline in the short term.

However, he points out that the reduction may come from the productivity of the sugarcane crop in April.

“I don’t see an immediate impact on the gas pump. Brazil is the largest ethanol exporter in the world and, with the sugarcane harvest next month, the tendency of our ethanol is to fall, so its share is very low in gasoline. In the coming months, the decrease of R$ 0.20 cents should not occur, this is actually a waiting situation”, he argued.

Quintella points out that Brazil imports a small percentage of ethanol. According to him, international purchases supply 12% to 13% of domestic consumption.

The researcher claims that the country is the second largest producer of ethanol in the world and has the lowest cost in the world, second only to the United States.

“The price may even rise for the importer with the arrival of the American summer, which consequently increases fuel consumption. The effects of the war may even reduce, but we must not assess this situation. We may have an increase in the pump regardless of the reduction, but it will only be in a few months”, emphasizes the director of FGV Transportes.

According to the economist and professor at Ibmec Gilberto Braga, as ethanol is mixed with gasoline at 27.5%, theoretically there will be a decrease in the price of gasoline.

But, in practice, it will not be easy for the consumer to see what, in fact, will decrease the value of the fuel.

“In theory, if there is no adjustment in the price of the refinery in relation to what is imported in oil, the price of gasoline could drop by R$0.20 cents. However, this is a very small margin for us to categorically state what will happen”, points out the economist.

“Within a city, prices must vary more than the value quoted by the government. The consumer should not be able to perceive who is actually decreasing, because the mentioned value is already part of the competition, which already makes this change for customers in the market.”

As for the president of the Brazilian Association of Fuel Importers (Abicom), Sérgio Araújo, there is indeed a potential for reducing the price of gasoline for consumers, with tax exemption on imported ethanol.

For him, the government’s decision came at the right time, with the period of conflict in Ukraine and the rise in values.

“In this time of war and very high prices, all initiatives aimed at reducing prices for consumers are welcome. We agree with this and other announced decisions that seek to reduce the impacts generated by high commodity prices, such as reducing the ICMS tax base, reducing PIS/COFINS and AFRMM (tax levied on maritime freight)”, observes the president.

CNN contacted the Sugarcane Industry Association (UNICA), but the entity said it would not comment on the matter.

The exemption on ethanol imports was adopted by the federal government amid a scenario of rising food and fuel prices.

The cost is estimated at R$1 billion per year to the public coffers in tax waivers, a loss of revenue that does not need to be compensated as it is a regulatory tax.

Source: CNN Brasil

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