BRAZILIAN GOVERNMENT SEEKS TO ENABLE OPERATIONS WITH NATURAL GAS IN FERTILIZER PRODUCTION

The Brazilian government submitted to Congress on Wednesday (04/24) the main supplementary bill (PLP) to regulate tax reform, defining the application of Selective Tax (IS) on oil and gas extraction. The bill states that gas used as industrial input will have a zero tax rate, aligning with the Gas to Employ program’s goal of promoting natural gas consumption in fertilizer and petrochemical industries. Concurrently, the Profert bill, aimed at providing tax incentives for the fertilizer sector, including natural gas exemptions for nitrogenous production, is under consideration. To enhance competitiveness, reducing gas chain costs and exemptions are crucial for fertilizer production, according to Heloísa Borges from EPE. Studies suggest gas prices between $3 to $9 per million BTUs to enable new nitrogenous fertilizer factories, requiring innovative market solutions, noted José Roberto Faveret.
Source: Global Fert