Government launches an incentive program to boost national biodiesel production

Machine translation was used to publish the following Ministry of Hydrocarbons and Energy release

UCOM MHE 08-06-2024.- President Luis Arce announced the launch of an innovative financial and fiscal incentive program to strengthen biodiesel production in the country. This initiative seeks to stimulate private investment in the sector and promote environmental sustainability through a series of measures that favor new ventures and existing companies in the industry.

The program includes a zero percent tariff levy for the import of machinery and equipment for biodiesel plants. This measure is added to the current zero Value Added Tax (VAT) for these inputs, which will allow private producers to access advanced technologies without the additional costs that traditionally entail the import of such equipment.

The implementation of this program also contemplates the application of advanced technology to increase the productivity of raw materials for the production of biodiesel. In addition, it is expected that investment in new ventures and the modernization of existing plants such as cusi, totaí and macororó, among others, will play a key role in increasing the flow of biodiesel production in the country.

The incentives are not only aimed at improving infrastructure and production capacity, but also seek to encourage research and development of new techniques and processes that optimize production and reduce environmental impact.

The program is designed to benefit a wide range of actors in the sector, from small local producers to large companies, and is expected to contribute significantly to the reduction of biodiesel imports, thus promoting the country's energy self-sufficiency.