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Federal Government regulates Biodiesel Social Seal

Posted by Rafael Moro
On Thursday (22), President Jair Bolsonaro issued a decree that regulates and changes the denomination of the Social Fuel Seal to Social Biofuel Seal, according to “Agência Brasil”. The concession of the right to use the seal allows the biodiesel producer to have access to the reduced rates of PIS / Pasep and COFINS, which vary according to the raw material purchased and the region of acquisition.

The measure aims to increase the inclusion of family farming by allowing both agricultural cooperatives, which do not hold a Declaration of Aptitude to the National Agriculture Strengthening Program (Pronaf), and institutions that commercialize the production of family farmers to be qualified and recognized by the Ministry of Agriculture, Livestock and Supply (Mapa) as entities able to commercialize the raw materials of family farmers under the National Program for the Production and Use of Biodiesel - PNPB.

Continues after the form

The decree maintains the reductions in PIS / Cofins contributions at the same levels and there is no expansion of beneficiaries. Thus, there is no additional tax waiver.

The Ministry of Agriculture will regulate the procedures and requirements for granting / renewing the Biofuel Seal, as well as inspecting biodiesel producers. The portfolio will be responsible for setting the validity of the seal.

The ministry will also establish the minimum percentage of family farmers that agricultural cooperatives must have in their cooperative staff for the purposes of qualifying as suppliers of raw material originating from family farming and granting the Social Biocombustible seal to biodiesel producers.