Brasília – This Friday (21st), a normative instruction has been published on the Brazilian Official Gazette lifting two taxes – the PIS/Pasep and the Social Security Contribution (Cofins) – on purchases of raw material for biodiesel manufacturing. The goal, according to the Brazilian Federal Revenue, is to provide further stimulus to the industry.
The instruction eliminates the levying of the two taxes on revenues from sales of plant-based raw materials for biodiesel manufacturing, made by legal entities undertaking agricultural activity, agricultural cooperatives or cereal producing legal entities. The Brazilian Ministry of Mines and Energy stresses that biodiesel is biodegradable fuel derived from renewable sources such as vegetable oils and animal fats.
*Translated by Gabriel Pomerancblum
