Source: Brasil agro, 17/11/2008

The commercialization of fuels in the country moves more than 90 billion liters per year, generating tax revenues of more than R $ 50 billion. Given this, what may seem subtleties in changing biofuels taxation deserves to be debated by the sectors involved in the market. Dietmar Schupp, director of taxation at Sindicom, recalls that automotive fuels, such as gasoline, diesel and hydrated alcohol, represent more than 90% of the financial movement of the market, and with the presence of biofuels in its composition.

- Fuels represent almost 1/3 of the total ICMS collection in the states. For this reason, it is very important to discuss taxation, especially on the eve of the much talked about tax reform - he highlights.

Dietmar is optimistic about the forecasts for the market. With regard to biofuels, he says it is important to consider that the material can be consumed as a final product, as is the case with hydrated alcohol, or mixed with another fuel derived from petroleum, such as anhydrous alcohol - which is mixed with gasoline, and the biodiesel to diesel. Regardless of the form, the tax director at Sindicom defends the idea that the taxation of biofuels should be lower than that of oil derivatives, as a way to encourage their consumption.

- Currently, the biggest problem in the commercialization of automotive fuels is in relation to hydrated alcohol, since taxation is not concentrated in the refinery, as is the case with gasoline and diesel. This will be changed with the new division proposed by the law (40% producer x 60% distributor) - comments Dietmar. - With the largest share of PIS / Cofins and ICMS being charged at the distributor, there are high signs of tax evasion and illegal alcohol sales. As a consequence, it is estimated that more than one billion liters of alcohol are traded in a clandestine manner per year, with tax evasion exceeding R $ 1 billion / year - he calculates (JB Online, 14/11/08)