Direct sale of ethanol to gas stations is authorized by Congress

Law enacted by Congress, in addition to releasing the direct sale of ethanol at gas stations, advances in relation to taxation rules

Last Tuesday (the 14th), the National Congress enacted Law 14.357, which authorizes the direct sale of hydrous ethanol by producers and importers of the product to gas stations. The Law originates from Provisional Measure 1.100, which was presented to Congress by the federal government and approved without any alteration, being thus enacted.

The act not only releases the direct sale of ethanol to gas stations, but also establishes changes to the PIS/Pasep taxation on the chain of production and commercialization of hydrous ethanol fuel. Now, the charges for the contributions incident on the ethanol chain are the same, whether under the condition of direct sale from the producer to the trader or in the event of commercialization intermediated by a distributor. The text was published in the Official Gazette of the Union this Wednesday, the 15th.

In September of last year, Congress had already approved an MP that related to the same issue, but the President of the Republic, Jair Bolsonaro, vetoed the articles that dealt with the direct sale of ethanol at gas stations. This is because, according to him, the inclusion of cooperatives in this measure could lead to an undue tax waiver.

BEAUTY AND PERSONAL CARE

Direct sales were also authorized by the ANP

Despite the president's actions, direct sales had already been authorized by the National Agency of Petroleum, Natural Gas and Biofuels (ANP). Authorization by law was, however, desired by the sector, since, in this way, the permission would become more consistent and would generate less insecurity. The new law takes up points that were vetoed.

According to the text approved by Congress, the commercialization company and the importer of hydrous ethanol fuel are authorized to commercialize the product with the distributing agent; external market; transporter-dealer-retailer; and fuel retailer. In addition, the sale of the product with hydrous ethanol production cooperatives is also permitted.

For Eduardo Velloso (União-AC) – rapporteur for the measure in the Senate -, the law paves the way for controlling the increase in fuel prices. He claims that the act seeks to increase economic efficiency from the non-mandatory that marketing operations go through a distributor in interactions between producers and importers or resellers and exporters.

The rapporteur also concludes that, therefore, opportunities are opened for the reorganization of the production chains, with the possibility of reducing the price of ethanol for the final consumer.

Also check out this article:

In order to contain the rise in fuel prices, the Senate approved yesterday (14/06) a PEC to maintain competitiveness and differentiate the tax burden of ethanol in relation to gasoline

Unanimously, the Senate approved yesterday (14/06) the Proposed Amendment to the Constitution (PEC) 15/2022, which encourages the competitiveness of biofuels in relation to fossil competitors, and which aims to maintain the differentiation of the tax burden of ethanol in relation to gasoline. The text maintains benefits for clean energy sources for at least 20 years.

The PEC is part of a package of projects aimed at containing the rise in fuel prices. On Monday (13), the Senate approved the project that sets a ceiling of 17% of ICMS on fuel, electricity and telecommunications and public transport services (PLP 18/2022).

On the initiative of Senator Fernando Bezerra Coelho (MDB-PE), PEC 15/2022 provides for the creation of “a favored tax regime for biofuels”, which will be defined in a complementary law to be approved by the National Congress. According to the PEC, the rates on renewable sources must be lower than those provided for fossil fuels.

To know more, click on this link and read the news in full.