Factsheet: Exemption from sales tax and global tax on diesel fuel - stimulation of biofuels of vegetable or animal origin

Exemption from sales tax and global tax on diesel fuel - stimulation of biofuels of vegetable or animal origin

Key Information
Full name of Instrument & Measure (English): 
Exemption from sales tax and global tax on diesel fuel - stimulation of production and commercialization of biofuels of vegetable or animal origin
Description: 
Law concerning tax exemptions among others for biodiesel, exemption from the sales tax and from the ‘global’ tax (impuesto global) on diesel fuel. Concerning biodiesel, Law 939/2004 was enacted with the aim of stimulating the production and commercialization of biofuels of vegetable or animal origin for use in diesel engines (with a description of products that can be considered as biofuel feedstock (for diesel engines) and incentives. This Law introduced a mandatory blending for biodiesel, which was gradually raised. As of December 2013, the blending mandate ranged from 10 percent (B10) in the Western part of the country to 8 percent (B8) in the Central part and 2 percent (B2) in the Eastern part, which is scarcely populated. As stipulated in Decree 4892/2011, the Ministry of Mines and Energy and the Ministry of Environment and Sustainable Development can set mandatory blending for ethanol and biodiesel higher than 10 percent. They can also adapt the mandatory blending level when exceptional situations occur (of social, public interest and/or national convenience) or when the national supply of biofuels is too low to comply with the mandatory blending.
Goal/Aim: 
Stimulate advanced biofuels
Responsible Authority: 
Ministry of Mines and Energy MME and the Ministry of Environment and Sustainable Development MADS

Status:

Trade Relevance: 
Sustainability of biomass (potentially to be exported)
Year Instrument & Measure Started: 
2004