started · updated
Brazil Congress approves fuel tax cuts and multi-sector incentives
The Brazilian Congress has advanced a major legislative package, PLP 114/2026, which aims to mitigate the impact of rising international energy prices caused by geopolitical tensions in the Middle East. The bill, which has passed both the Chamber of Deputies and the Senate, provides for federal tax reductions on diesel, biodiesel, gasoline, ethanol, and aviation kerosene.
Beyond fuel, the expanded legislation includes significant fiscal incentives for other sectors. This includes up to R$ 5 billion in tax credits for the domestic fertilizer industry through 2031, incentives for critical minerals and rare earths, and tax benefits related to the 2027 Women's World Cup. To protect the biofuels sector, the text mandates that if gasoline tax reductions reach 30% or more, ethanol taxes must be reduced to zero. Additionally, the project provides up to R$ 1.2 billion in aid for ethanol producers.
To offset the loss in tax revenue, the government will utilize the increased revenue from oil and gas royalties. The bill also introduces fiscal safeguards, including mechanisms to limit public spending growth if a deficit is projected, potentially impacting the constitutional minimum for health spending.
Separately, the federal government has regulated the opening of the free energy market to low-voltage consumers. This transition will begin for industries and businesses in November 2027, and for residential consumers in November 2028, allowing them to choose their electricity providers.
Entities
BNDES · Brazil · Brazilian Chamber of Deputies · Brazilian Congress · Brazilian Senate · Chamber of Deputies · Companhia Nacional de Abastecimento · Conab · FIFA · Laércio Oliveira · Luiz Inácio Lula da Silva · Marussa Boldrin
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 19 SOURCES] The Brazilian Senate approved Project of Law 699/2023. paraonline.com.br
- [● 6 SOURCES] The Senate approved Project of Law 3.289/2026 to expand the Counter Sales Program (ProVB).
- [● 17 SOURCES] The Profert program includes tax exemptions for importing machinery for fertilizer plants. paraonline.com.br
- [DISPUTED] The Profert program provides up to R$ 1 billion per year in tax credits between 2027 and 2031. paraonline.com.br · www.cnnbrasil.com.br · www.bombeirosdf.com.br · www.gp1.com.br
- [● 18 SOURCES] The Profert program aims to reduce Brazil's dependence on imported fertilizers. paraonline.com.br
- [● 6 SOURCES] The ProVB expansion includes products for animal feed like corn, sorghum, and soybean meal.
- [● 6 SOURCES] Conab is authorized to purchase agricultural products up to 25% above the minimum price.
- [● 18 SOURCES] The Profert implementation period is set from 2027 to 2031. paraonline.com.br · www.cnnbrasil.com.br · www.bombeirosdf.com.br · www.gp1.com.br
- [● 4 SOURCES] The fuel tax reduction aims to mitigate price volatility caused by Middle East conflicts. www.gp1.com.br
- [● 7 SOURCES] The Chamber of Deputies approved PLP 114/2026 to reduce taxes on fuels. www.bombeirosdf.com.br · www.gp1.com.br · ohoje.com · www.acordacidade.com.br
- [● 8 SOURCES] President Lula signed a decree regulating the free energy market for small and medium consumers. itapevinoticias.com.br
- [● 19 SOURCES] The bill includes tax benefits for ethanol, fertilizers, critical minerals, and the 2027 Women's World Cup. ohoje.com · www.acordacidade.com.br · www.bombeirosdf.com.br · ccnnews.com.br · futebolparameninas.com.br · +4 more