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Brazil approves fuel tax cuts and multi-sector fiscal incentives FAST-MOVING
The Brazilian Congress has approved Complementary Law Project (PLP) 114/2026, which establishes federal tax reductions on the import, production, and sale of diesel, biodiesel, gasoline, ethanol, and aviation kerosene. The measure aims to mitigate price volatility caused by geopolitical tensions in the Middle East between the United States and Iran.
The final text, expanded by rapporteur Marussa Boldrin, includes various incentives for other sectors. These include up to R$ 5 billion in tax credits for fertilizer production between 2027 and 2031, and financial aid of up to R$ 1.2 billion for ethanol producers to maintain competitiveness against fossil fuels. The bill also provides tax benefits for critical minerals, rare earths, and the 2027 Women's World Cup.
To offset revenue losses, the government will utilize increased federal revenue from higher oil prices and royalties. The project also introduces fiscal safeguards to limit public spending growth in the event of projected deficits.
Entities
BNDES · Brazil · Brazilian Chamber of Deputies · Brazilian Senate · Chamber of Deputies · Companhia Nacional de Abastecimento · Conab · FIFA · Laércio Oliveira · Luiz Inácio Lula da Silva · Marussa Boldrin · Profert
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 19 SOURCES] The Brazilian Senate approved Project of Law 699/2023. paraonline.com.br · gpcnoticias.com.br · economia.ig.com.br · paraibatotal.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 · gpcnoticias.com.br · economia.ig.com.br · paraibatotal.com.br
- [DISPUTED] The Profert program provides up to R$ 1 billion per year in tax credits between 2027 and 2031. paraonline.com.br · gpcnoticias.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 · gpcnoticias.com.br · economia.ig.com.br · paraibatotal.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 · gpcnoticias.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. www.nitronewsbrasil.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 · www.cnnbrasil.com.br · +11 more