Brazil to stop ethanol tariff
The Brazilian Chamber of Foreign Trade is to remove the ethanol tariff until 31 December 2011.
By momentarily suspending Brazil’s 20% tariff on ethanol for a year, starting from 31 December this year, the nation hopes that the US will follow its lead and reduce or remove its own taxes that are placed on imported ethanol.
At the moment ethanol that has been brought into the country contains an ad valorem tax of 2.5% and an additional $0.54 (€0.40) per gallon surcharge.
The Brazilian Sugarcane Industry Association wants both Brazil and the US to get rid of their ethanol tariffs. According to Joel Velasco, chief North American representative for the association, ‘Consumers win when industries compete. Brazilian ethanol producers are willing to compete for consumers.’
However ethanol trade coalition Growth Energy would prefer the US to keep the ethanol tariffs and provide more subsidies to ethanol producers – a lot like Brazil. CEO of Growth Energy said: ‘The US would do well to follow their example and promote American ethanol producers rather than giving tax breaks to foreign ethanol and increasing our dependence on foreign energy.’
By momentarily suspending Brazil’s 20% tariff on ethanol for a year, starting from 31 December this year, the nation hopes that the US will follow its lead and reduce or remove its own taxes that are placed on imported ethanol.
At the moment ethanol that has been brought into the country contains an ad valorem tax of 2.5% and an additional $0.54 (€0.40) per gallon surcharge.
The Brazilian Sugarcane Industry Association wants both Brazil and the US to get rid of their ethanol tariffs. According to Joel Velasco, chief North American representative for the association, ‘Consumers win when industries compete. Brazilian ethanol producers are willing to compete for consumers.’
However ethanol trade coalition Growth Energy would prefer the US to keep the ethanol tariffs and provide more subsidies to ethanol producers – a lot like Brazil. CEO of Growth Energy said: ‘The US would do well to follow their example and promote American ethanol producers rather than giving tax breaks to foreign ethanol and increasing our dependence on foreign energy.’
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