Platts increases federal PIS/Cofins tax rate on Brazilian ethanol assessments

Platts, part of S&P Global Commodity Insights, has increased the federal PIS/Cofins tax rate for hydrous and anhydrous ethanol to 0.19/l from 0.13/l, as outlined in Brazil's tax reform regulation, effective May 1, 2025.

Brazil's new monophase taxation system for PIS and COFINS on ethanol will centralize the tax collection at the production and importer stage, while exempting fuel distributors from paying these taxes.

Currently, hydrous ethanol (used in flex-fuel vehicles) is taxed under a dual-phase system. Producers pay Real 0.13 per liter in PIS/Cofins, while distributors pay an additional Real 0.11/l when selling to gas stations, totaling Real 0.24/l in federal taxes.

In contrast, anhydrous ethanol (blended with gasoline) is taxed only at the producer level at Real 0.13/l, as the tax is already embedded in the final price of gasoline distributed.

Affected Platts assessments include:

• AAXNQ00 -- Hydrous ex-mill Ribeirão Preto
• AAXNN00 -- Anhydrous ex-mill Ribeirão Preto
• ADROA00 (daily), ADROA04 (weekly), ADROA03 (monthly) -- Hydrous CIF Paulínia
• AAXFW00 (daily), AAXFW04 (weekly), AAXFW03 (monthly) -- Anhydrous DAP Suape
• AAXNR00 -- Hydrous FOB Santos
• AAXNS00 -- Grade B FOB Santos
• AAWFO00 -- Anhydrous FOB Santos
• AAXOA00 -- Hydrous in Raw Sugar Equivalent

These assessments are published in the Platts price database under the codes listed above, and are also featured in the Biofuelscan and the weekly Fuel Ethanol Report.

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