From the Paraguayan Chamber of Biodiesel (BIOCAP), they shared the satisfaction regarding the decision taken by the Undersecretary of State for Taxation (SET), on Resolution No. 125/2023 through which the list of raw materials and inputs to be used for the production of biofuel for diesel engines.
The union celebrates said provision, a process in which they participated, which It comes to correct a distortion that existed in the biofuel industry, taking into account that biodiesel as a final product for sale was exempt from Value Added Tax (VAT) and not raw materials such as vegetable oils and other consumable inputs.
“The previous situation generated a distortion in the VAT, because it became one more cost for the producer, therefore, it made the possibilities of producing even more complex. We celebrate this, but it is also the kickoff for the authorities to exercise a political decision to support the industry”, they expressed from the camera.
In this regard, the president of Biocap, Massimiliano Corsi, pointed out that this It is just a step above, and that there is still a fundamental pillar to be resolved, which is to generate marketsince currently the existing Law No. 6389/2019 “Which establishes the promotion regime for the sustainable production and mandatory use of biofuel suitable for use in diesel engines”, provides for a mixture percentage that should be 5%.
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On the contrary, currently the percentage is only 1%, and Paraguay, which has great potential as a country that produces renewable energy, is far behind in this sense, since high percentages are managed throughout the region, as in Brazil, which has expected to reach 15% and Argentina, which already covers 12%.
Therefore, As a chamber, they urge opinion makers and decision makers to act in pursuit of the country’s development through this biofuels sector, because “Paraguay can be a regional power in the production of renewable energies, but if it does not enjoy clear accompanying policies, the planned or ongoing investments may cease to be made,” they said.
BENEFITS OF BIODIESEL
Regarding the benefits of the use of biofuelsBiocap took pains to emphasize that it is important to understand that biodiesel, which is the biofuel obtained from vegetable or animal oils, contributes not only to sustainability. Well, by being able to replace fossil fuels while saving polluting emissions, since for every liter of biodiesel used almost 80% of carbon dioxide can be saved, it also generates an economic impact on foreign exchange by being able to replace fuel imports.
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This because of The biofuels that will be produced by the large companies mentioned will not only produce, generate labor, but will also export this clean and renewable energy, while promoting the concept of energy independence. or the generation of its own fuel, even more so in the global context of energy crises, so having a local fuel and exporting the surplus is a more than important strategic decision, the statement underlines.
MORE ABOUT BIOCAP
The Paraguayan Chamber of Biodiesel (BIOCAP) was founded on August 7, 2003, with the mission of promoting and fostering the development of the biodiesel industry and the cultivation of its raw materials, to ensure faithful compliance with the legal provisions that regulate the sector.
