The Brazilian government is set to resume the collection of federal taxes on fuels this week, the Finance Ministry said on Monday, with the rate on fossil fuels higher than for biofuels. A measure to exempt federal taxes levied on fuel was launched by former President Jair Bolsonaro last year as he sought to boost his popularity by lowering prices ahead of a re-election bid. But President Luiz Inacio Lula da Silva, who defeated Bolsonaro in October, extended the tax waiver on diesel and biodiesel until December of this year, and on gasoline and ethanol until February.
The end of the waiver is seen positively by Brazil’s ethanol industry, since without taxes the biofuel loses competitiveness against gasoline.
