Inside Report (1)

July 18, 1980

Congress may slap stiff import taxes on Brazilian alcohol being used to make gasohol for cars. Two years ago, the lawmakers exempted gasohol from the usual 4-cent-a-gallon tax on gasoline. The idea was to help US gasohol firms. But Brazil also got a boost.

Imports of Brazilian alcohol have gushed from near zero in 1978 to 8 million gallons a month today. That's worth $2.5 million a month to Brazilian producers , who make alcohol from sugar. US makers use more costly grains.

Congress is upset about all this. Imports of Brazilian alcohol to the US might even be blocked.m