Piauí Governor investigated for potential abuse of power regarding agribusiness tax exemptions

The Federal Public Ministry (MPF) has launched a preliminary investigation into potential abuse of political and economic power in the state of Piauí. The probe focuses on a law enacted and sanctioned by Governor Rafael Fonteles that grants total tax exemptions for the use of state-owned water resources for agricultural and livestock activities.

According to the MPF, while low-income small farmers and land reform settlers were already covered by existing regulations, this new legislation provides indiscriminate exemptions that directly and significantly benefit large-scale irrigation and livestock corporations. The investigation notes that granting broad, perpetual sector-specific tax exemptions during an election year—without prior budgetary impact studies—suggests a potential diversion of public purpose and could create an imbalance for the 2026 general elections.