Brazil unveils tax breaks, credit for ethanol industry

BRASILIA, April 23 Tue Apr 23, 2013 11:36am EDT

BRASILIA, April 23 (Reuters) - Brazil will cut taxes and extend lines of credit for a struggling sugar cane ethanol industry that has lost market share to gasoline due to rising production costs, Finance Minister Guido Mantega said on Tuesday.

Mantega announced that Brazil's so-called PIS/Cofins federal social security taxes, which stand at a combined 12 percent for ethanol, will be slashed to almost zero for the biofuel.