Brazil passes tax breaks, diesel subsidy and export credit measures

The Lula administration issued a provisional measure that exempts import duties on goods priced below US$ 50. Internal documents show the draft was prepared on May 12 and signed on the same day, with legal analysis completed just hours before publication.

A separate provisional measure creates an extraordinary credit line of R$ 550 million to fund subsidies for the importation of road diesel, aiming to safeguard domestic fuel supply, lower transport costs and cushion inflation amid volatile international oil prices.

The Senate’s mixed commission approved Senator Alan Rick’s report on a new export‑credit program, authorising up to R$ 15 billion in financing through BNDES and other banks. The scheme broadens access to credit for micro, small and medium exporters in sectors such as agribusiness, fisheries, forestry and minerals, helping firms meet sanitary, environmental and traceability standards. "Our goal was to make this instrument more inclusive, allowing more companies, cooperatives and export sectors to obtain financing in a time of major challenges for international trade," Rick said.

The Chamber of Deputies also approved a provisional measure extending the “drawback” tax‑exemption period for cocoa imports from two to six months. The change seeks to align import timing with Brazil’s two‑harvest cocoa cycle, preventing stock build‑up that could depress domestic prices. The measure could affect roughly 200 000 workers in the cocoa sector.