Platts clarifies specifications for Brazilian Biodiesel DAP Paulinia assessment from May 1

Platts, part of S&P Global Commodity Insights, clarifies that the Brazilian Biodiesel DAP Paulinia assessment -- ABPLA00 -- does not include ICMS tax and includes PIS and COFINS taxes.

The new ICMS tax policy, published by the Ministry of Finance and the National Council for Finance Policy on March 31, 2023, will be implemented from May 1.

As per standard practice carried out for biodiesel negotiations net of ICMS taxes, Platts will not include ICMS tax in the daily Brazilian Biodiesel DAP Paulinia assessment, published under symbol (ABPLA00).

Platts would consider price indications with tax included but would normalize this to reflect a non ICMS tax value.

As the ICMS was considered a deferred tax for Brazilian biodiesel producers until April 30, 2023, Platts methodology did not consider it as part of the pricing methodology.

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