Platts updates PIS and COFINS federal taxes and ICMS tax rate in Brazil ethanol assessments

In line with the methodology, Platts, part of S&P Global Commodity Insights, has updated its Brazilian ethanol assessments to factor in the new Brazil tax rates.

The updated assessments consider a Real 130.9/cu m tax rate, effective June 29, in accordance to provisional measure 1163/23 and 120 days after the initial Feb. 28 announcement from the Brazilian government to readjust the federal PIS and COFINS taxes on June 29.

Following the biofuels bill PEC 15/2022, implemented July 15, 2022, that changes the existing ICMS tax on ethanol by the same ratio as the tax savings for gasoline, Platts also updates its Brazilian ethanol assessments to reflect a 12% ICMS tax rate, effective and including July 1, 2023.

The Platts Global Biofuel Methodology and Specifications guide states that the domestic Brazil ethanol assessment includes the ICMS tax, as well as the PIS/COFINS tax. While for the FOB ethanol prices assessments Platts may look at related markets such as the domestic anhydrous ex-mill Ribeirao price assessment adjusted for freight, terminal costs and taxes.

The affected assessments are:

AAXNQ00 - Anhydrous ANP domestic ex-mill Ribeirao with taxes

AAXNQ00 - Hydrous ANP Domestic Ex-mill Ribeirao with taxes

AAXNR00 - Hydrous ANP FOB Santos

AAWFP00 - Ethanol Cargo (Real/cu m)

AAWFO00 - Ethanol Cargo ($/cu m)

AATAE00 - Ethanol Cargo (/gal)

AAXOA00 - Ex-mill Ribeirao Hydrous Raw Sugar equivalent

AAXFW04 - NNE Brazil delivered Suape anhydrous weekly

AAESI00 - Anhydrous ethanol DAP Suape import parity (incl. Taxes)

The assessments appear on Platts Biofuels Alert (PBF) Page 223, in the Biofuelscan, the weekly Fuel Ethanol Report, and in the Platts price database under the codes above.

Please send any feedback, questions or comments to MRTS_biofuelsandfeedstocks@spglobal.com and pricegroup@spglobal.com.

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