Agribusiness sector is working to reform the tax system to avoid loss of competitiveness for ethanol.

Members of the rural caucus in Congress are working to amend Bill 114/2026 to guarantee a tax advantage for ethanol over gasoline, following the federal government's creation of a subsidy for fossil fuels through Provisional Measure 1,358/2026. This information was published by the newspaper. Economic ValueThe proposal has been discussed among parliamentarians, representatives of the sector and technicians from the Ministry of Mines and Energy. The project report should be presented on Monday (25). According to Congressman Arnaldo Jardim, coordinator of the Biofuels Coalition in Congress, one of the alternatives under analysis is to extend the subsidy to ethanol or create another compensation mechanism. “If there is support for gasoline in the form of a subsidy, ethanol cannot lose competitiveness,” he stated. The provisional measure created a compensation mechanism of up to R$ 0.89 per liter for gasoline producers and importers. On Wednesday (20), Petrobras approved its adherence to the program. Currently, the PIS/Cofins and Cide tax on gasoline totals R$ 0.68 per liter, while the taxation of ethanol is R$ 0.19 per liter.

This text was translated by machine from Brazilian Portuguese.