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Brazil cuts taxes to support petchem and ethanol makers

2:41 PM MDT | April 26, 2013

Brazil has proposed a set of tax cuts to boost its petrochemical and ethanol sectors, according to a statement from the Finance Ministry (Brasilia) issued on 24 April. One of the measures announced by Guido Mantega, finance minister, seeks to reduce to 1% the social integration tax, known as PIS; and the social contribution tax, Cofins, that are applied to raw materials and certain chemicals. The taxes, which function as value-added taxes, currently stand at 5.6%. The measures are effective immediately and will be gradually reduced between 2016 and 2018.The tax...

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