The Ministry of Economy decided to increase the Contribution for Intervention in the Economic Domain (CIDE) by R $ 0.20 per liter for gasoline, passing the tax from R $ 0.10 to R $ 0.30 per liter and to tax imports from the fossil fuel by 15%. The official announcement should be made on Friday (1st), since the decision on the new taxes was taken at a meeting held last night. The measures should be published in the Federal Official Gazette after being approved by President Jair Bolsonaro. “The import tax is immediately applicable. The CIDE will only be valid in 90 days, since raising the tax requires ninety to come into effect, but it gives a price signal. With that price sign, things evolve and next week, we will set up the warranting program for storing ethanol. It is good news that gives a breath to the sector ”, celebrates Arnaldo Jardim, deputy and president of the Parliamentary Front for the Valorization of the Sugar-Energy Sector. The financing for warranting would make it possible to keep 6 billion liters of biofuel in stock, a volume equivalent to almost 25% of the production of the 2020/21 harvest. The estimate for this storage is R $ 9 billion and Ministries of Economy and Agriculture are studying credit lines that would be created through a consortium between public and private banks, as the BNDES does not have the resources to make the loan to the segment alone. The temporary reduction in the federal tax burden applied to hydrated ethanol PIS / Cofins on biofuel, which is about R $ 0.24 / liter today, also requested by the sector, was not approved by the Ministry of Economy.

Source: Jornal Cana