Agencia Brasil

Brasilia – Brazilian Foreign Trade Chamber (CAMEX) decided this Wednesday (22) to reduce from 20% to zero import tariffs of both the anhydrous and the hydrated alcohol. With this measure, the product enters the list of exceptions of the Mercosur Common External Tariff (TEC).

According to CAMEX Executive Secretary, Mario Mugnaini, the objective is to increase the stock of alcohol in the internal market to force price reduction.

A possible reduction of the fuel tax (CIDE) was not discussed in the CAMEX meeting. In the opinion of the Minister of Mines and Energy, Silas Rondeau, however, even though the consumer pays an average of 1.3% more to fill up the tank with gasoline, there will be a gain: "When you reduce from 25% to 20% the amount of alcohol [mixed with gasoline], engine’s performance improves about 2%," he explained.

Translation: Andréa Alves