The Federal Senate approved on Wednesday (8) the Provisional Measure (MP) 1,100/2022, which adjusts the collection of taxes on ethanol to allow the direct sale of the producer or importer to the retail sector. The text goes on for promulgation. The direct sale of Ethanol from the producer to retailers was authorized earlier this year by Law 14,292 of 2022, but vetoes by the Brazilian President impeded its effectiveness. The government expressed concerns about the loss of revenue at that time, according to Agência Senado. MP 1.100/2022 rescues the vetoed procedures and advances the taxation rules. The text equates ethanol production cooperatives with fuel producing agents. They can opt for taxation based exclusively on the volume or else on the revenue and production. In the first case, they must pay a sum of contributions fixed per cubic meter of the product to producing agents and distributors. In the second case, they must pay 1.5% as PIS and 6.9% as Cofins on the revenue obtained, plus fixed contributions per cubic meter.
Source: Jornal Cana (*Translated by Ia Niani)