BRAZIL: Inpasa will receive tax incentives for corn ethanol plant in Mato Grosso
Published: 07/12/2018, 5:29:48 PM
Paraguayan company Industria Paraguaya Alcoholes S.A. (Inpasa) will receive BRL2 million (US$550 million) in tax incentives from the local government of Sinop, located in Brazil's Mato Grosso state, to install a new corn ethanol mill in the region, reports So Noticias news website.
Inpasa is expected to invest BRL500 million (US$136.9 million) in the new mill and generate 400 direct jobs.
The local government approved the tax incentives with urgency to avoid any delay in the construction of the project, which is already in the phase of hiring workers.
This is the second tax incentive package approved in favor of Inpasa. The company has already received a BRL300,000 (US$82,140) discount in a real state-related taxation.
Production of Brazilian corn ethanol is expected to increase in the next couple of years, as investors prepare to build exclusive corn ethanol mills in Mato Grosso state, expecting higher demand for the biofuel as a result of the RenovaBio program.