Brazil extends tax cuts on gasoline and ethanol for another 30 days
The measures will remain in force until December 9, 2026.
Brazil’s acting president, Geraldo Alckmin, signed a decree extending tax cuts on gasoline and ethanol, along with subsidies for the biofuel sector, for another 30 days.
Brazil’s acting president, Geraldo Alckmin, signed Decree 13.159/2026, extending for another 30 days the reduction of taxes on gasoline and ethanol and an economic subsidy for the biofuel sector. The decree was published in an extra edition of the Official Gazette of the Union on November 9.
The measures, which were due to expire on November 9, will now remain in force until December 9, 2026.
The decree keeps the PIS/Pasep and Cofins contribution rates at zero for the import and sale of gasoline and its streams. Aviation gasoline is excluded. The zero rates also remain in place for transactions involving hydrated fuel ethanol.
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The Cide-Combustíveis contribution on gasoline and its streams will also remain at zero.
The extension also covers an extraordinary subsidy of 0.428 reais per liter of hydrated fuel ethanol. It is intended for producers and cooperatives that produce biofuels for final consumption.
The subsidy is intended to preserve biofuels’ competitive advantage over fossil fuels. The extension also takes into account rising international oil prices associated with the conflict in the Middle East. The measure is intended to help prevent inflationary pressure if gasoline and ethanol prices rise.
