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Economy

Rapporteur expands project on fuels and includes expenses outside the ceiling and benefits for fertilizers and critical minerals

Representative Marussa Boldrin (Republicanos-GO) included tax benefits for other sectors, such as critical minerals and fertilizer production in her opinion for the project that allows the use of extra oil revenue to reduce taxes on fuels....

By 365 Breaking News Editorial Team 3 min read
Rapporteur expands project on fuels and includes expenses outside the ceiling and benefits for fertilizers and critical minerals
365 Summary

The President of the House, Hugo Motta (Republicanos-PB), had already announced the government's attempt to expand the scope of the proposal, which also deals with the tax exemption for the Women's World Cup in Brazil in 2027. Furthermore, the text initially sought to reduce the economic effects of the conflict between the United States and Iran in the...

  • Furthermore, the text initially sought to reduce the economic effects of the conflict between the United States and Iran in the Middle East, removing R$2.5 billion from the spending limit...
  • The proposal also makes it possible to bring forward from 2027 to 2026, by up to R$3 billion, investments in education and health financed by the Social Fund (FS).
  • The text was already on the Chamber's agenda on several occasions in the first half of the year, but was never voted on.

Editorial reading aid based only on information contained in this story and its identified source.

Representative Marussa Boldrin (Republicanos-GO) included tax benefits for other sectors, such as critical minerals and fertilizer production in her opinion for the project that allows the use of extra oil revenue to reduce taxes on fuels. The document was filed this Wednesday (12) in the Chamber of Deputies. The President of the House, Hugo Motta (Republicanos-PB), had already announced the government's attempt to expand the scope of the proposal, which also deals with the tax exemption for the Women's World Cup in Brazil in 2027. Furthermore, the text initially sought to reduce the economic effects of the conflict between the United States and Iran in the Middle East, removing R$2.5 billion from the spending limit provided for in the Fiscal Framework in defense investments. The proposal also makes it possible to bring forward from 2027 to 2026, by up to R$3 billion, investments in education and health financed by the Social Fund (FS).

The text was already on the Chamber's agenda on several occasions in the first half of the year, but was never voted on. The final version, which should be put to a vote this Wednesday, was finalized on Tuesday night (11) in a meeting with the Minister of Planning, Bruno Moretti. Taxes on fuel Under the proposal, the government will be able to reduce taxes on fuel and compensate for the loss of revenue with the extraordinary increase in revenue obtained by the Union due to the international rise in oil prices. To do this, you can use royalties, special participations from the Union arising from the results of oil or natural gas exploration, taxes collected by the oil and gas sector and dividends from state-owned companies linked to the segment. According to the text, the reduction in federal taxes will be used in the import, production and sale of road diesel oil, biodiesel, gasoline, ethanol and aviation kerosene. Gas station photo. Marcello Casal Jr./Agência Brasil Biofuels and fertilizers To maintain the competitiveness of biofuels, the proposal determines that any tax reduction granted to gasoline preserves the competitive advantage of ethanol. If federal taxation on gasoline is reduced by 30% or more, the rates on ethanol must be reset to zero. Furthermore, the government is authorized to grant subsidies to ethanol producers to compensate for any losses in competitiveness. For the period between May and August 2026, the opinion provides for a subsidy of up to R$1.2 billion for the sector. The proposal also authorizes ethanol producers to use Pis/Pasep and Cofins credit balances and grants tax credit to projects aimed at producing fertilizers and their raw materials in Brazil.