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[BUSINESS] · Brazil · 31 sources

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Brazil sanctions law to allow fuel tax reductions

President Lula has sanctioned Complementary Law 235/2026, which establishes rules for reducing federal taxes on the import, production, and sale of major fuels. This measure aims to mitigate the economic impact of energy market volatility caused by conflicts in the Middle East. The law allows the federal government to offset potential revenue losses from these tax reductions using extraordinary revenue generated by high international oil prices.

The legislation includes safeguards for the biofuels sector. If federal taxes on gasoline are reduced by 30% or more, the tax on ethanol must be reduced to zero to maintain competitiveness. Additionally, the law provides up to R$ 1.2 billion in financial aid for hydrated ethanol producers and cooperatives.

Beyond fuels, the law introduces tax benefits for the National Policy of Critical and Strategic Minerals and the Fertilizer Industry Development Program. It also includes specific tax treatments for initiatives related to the 2027 Women's World Cup.

Regarding the broader tax reform, starting in 2027, companies under the Simples Nacional regime will have the option to collect the new IBS and CBS consumption taxes either through the unified DAS system or via the regular regime. This choice may impact tax credits and business competitiveness.

Entities

Brazil · CBS · Chamber of Deputies · Federal Government of Brazil · IBS · Luiz Inácio Lula da Silva · Lula · Mato Grosso · Nunes Marques · Senate of Brazil · Simples Nacional · Supreme Federal Court

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Página interna do portal [amazoniaonline.com.br]
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