Brazil Rio de Janeiro state mulls over ethanol tax reduction
Aug 22, 2012 - The government of Brazil's southeastern Rio de Janeiro state may reduce the tax levied on ethanol production in the state from the current 24%, Rio's economic development secretary, Julio Bueno, revealed yesterday.
The new rate is still under analysis and needs to be approved by the state's budget and financial planning commission Copof.
The directive introducing the tax cut is expected to be signed by Rio's governor, Sergio Cabral, on August 29.
The measure will aim at turning ethanol into the most competitive fuel in the state, Bueno said.
The demand for petrol (gasoline) in Brazil climbed 57% in 2010 and 2011, and has already increased by 13% since the beginning of 2012. The country has been importing petrol and thus the government needs to encourage the ethanol consumption, according to the opinion of fuel distributors union Sindicom.