PWC indicates that the Brazilian tax burden is higher than 35% (federal, state and municipal), reaching 45% when considering other charges and labour sector.
The matter is being dealt with by the Ministry of Mines and Energy, which said it has developed a technical study on the possibility of reducing the costs of electricity in the country.
Adding taxes and charges, the energy for industrial use in Brazil amounts to €41/MWh, which is three times higher than in Germany, seven times higher than in UK and 16 times more expensive than industrial power in Japan.
For example to produce 1t of aluminium takes about 15MWh. The average cost of this phase in the world is around $30/MWh. “There is no aluminium producer in Brazil that has lower cost at least double that,” said Mauro Moreno, vice president of Abal.