Proposal equalizes federal taxes levied on national and imported anhydrous ethanol

President Jair Bolsonaro, the Ministers Bento Albuquerque (Mines and Energy), Paulo Guedes (Economy), and Tereza Cristina (Agriculture, Livestock and Supply), participated this Wednesday (11/08) in the signing ceremony of the Provisional Measure (MP) that proposes amendments to Law No. 9,478/1997, the Petroleum Law, allowing the producer or importer to optionally trade hydrated ethanol directly with gas stations, and that the transporter-dealer-retailer ( TRR) can market hydrated ethanol.

It should be noted that, in order to make the direct sale of hydrated ethanol feasible, the measure provides for a dual taxation system, with the producer collecting all federal taxes, mitigating the risk of tax evasion. Furthermore, the proposal equalizes federal taxes levied on national and imported anhydrous ethanol, correcting the then existing distortion.

The MP also deals with the flexibility of regulatory protection of loyalty to the brand, allowing the service station that chooses to display the distributor's commercial brand, known as “branded”, to alternatively sell fuel from other suppliers. The measure provides for the respect of contracts and preserves the consumer's right to adequate and clear information about the different products and services offered by the post.

The action is in line with the deliberations of the National Energy Policy Council (CNPE) and studies carried out by the National Agency for Petroleum, Natural Gas and Biofuels (ANP), with the objective of increasing competition, benefiting the end consumer.

“The Federal Government has been working to improve the sector's regulatory framework, with greater plurality of actors, more dynamic and more competitive. A framework that aims to create the necessary conditions for the desired investments in infrastructure in the sector, generating employment and income in the country, seeking better conditions in terms of price, quality and supply of products for the Brazilian consumer”, said the Minister of Mines and Energy, Bento Albuquerque.

The new instrument expands commercial relations and encourages new business arrangements between distributor and retailer. Thus, together with other actions of the Federal Government to open up the market, these measures encourage competition and carry the potential to reduce fuel prices.

In this sense, the Federal Government will continue to be engaged, together with the National Congress and public and private sector agents, in the implementation of actions aimed at maintaining and improving a competitive business environment that is conducive to making investments in infrastructure in the fuels, always focusing on the Brazilian consumer.