Brazil Bill Proposes Tax Incentives for Recycling Cooperatives

Bill 3291/26, currently under analysis in the Brazilian Chamber of Deputies, proposes tax incentives for companies that purchase recyclable materials directly from registered waste picker cooperatives and associations. The legislation suggests a discount of up to 1% on Corporate Income Tax (IRPJ) and up to 0.5% on the Social Contribution on Net Profit (CSLL).

To qualify for these benefits, companies must meet several requirements: purchasing directly from officially registered organizations, issuing tax documents that identify the supplier, proving the environmentally appropriate disposal of materials, and maintaining fiscal regularity. The bill specifies that any discount exceeding the tax due in a period cannot be refunded, compensated, or carried forward to future periods, and it cannot be combined with other tax incentives for the same operation.

The bill's author, Deputy Marcelo Crivella, argues that the measure will reduce pressure on urban cleaning and waste disposal systems, potentially saving public funds. Data from the National Movement of Waste Pickers indicates that these professionals are responsible for approximately 90% of all materials reaching the recycling industry, despite facing high levels of informality and low pay.