Clipping of news on Brazilian Culture, Law and Citizenship
05/02/2013
This article was translated by an automatic translation system, and was therefore not reviewed by people.
Measure is part of the benefits package for the ethanol sector.
Government did not ensure reduction in the pump price of fuel.
From this Wednesday (1st), the Brazilian who supply the car with gasoline will be putting more alcohol in the tank: the percentage of ethanol in the fuel goes from 20% to 25%.
The measure is part of a benefits package for the sugar and alcohol sector, announced by the government in the last 6 days.
"Today Brazil is the largest sugar producer and second largest ethanol. We need to increase our investments and increase the supply of ethanol to elevate the mixture with gasoline and replace a portion of the gasoline consumption, "Mantega said in announcing the package.
In the package, the government also provides for a tax offset that will equate to zero the PIS and COFINS ethanol, which now account for U.S. $ 0.12 per liter. According to Mantega, however, this reduction does not guarantee a drop in the price of ethanol to the final consumer.
"The main goal of this reduction is feasible conditions for the sector to make more investments. (...) Not necessarily mean that the producer will pass for the price," he said. He said the goal is to encourage high production, and "reduce price from more supply."
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Source: G1
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This article was translated by an automatic translation system, and was therefore not reviewed by people.