Brazil Senate Approves Fuel Tax Bill, Goes to Lower House

Brazil’s Senate approved a bill that allows a change in ICMS tax on fuels and cuts to zero the PIS/Cofins taxes on diesel, cooking gas and biodiesel and those applied to imports of aviation kerosene until Dec. 31.

• Bill’s main-text was approved by 68 to 1, now heads to lower house
• Tax rates will be defined by the states, will be uniform throughout the nation
• A minimum gap of 12 months is established between the first tax set and the first readjustment of the uniform rate
  • Other adjustments may be made at 6-month intervals
  • Tax rate reductions can happen at ...