Brazil’s Senate Agriculture Committee has passed the Profert bill, channeling R$30 billion ($6 billion) into fertilizer industry development by 2030.
Proposed by Senator Laércio Oliveira and endorsed by Senator Tereza Cristina, the legislation aims for a Chamber of Deputies review.
Profert introduces tax incentives to stimulate local fertilizer production, offering benefits for acquiring new production machinery and materials.
Incentives cover PIS/Pasep, COFINS, IPI, and import tax.
Amendments suggest extending tax advantages to debentures from Profert-affiliated companies and propose a five-year duration for these benefits.
Senator Tereza Cristina underscores Profert’s role in ensuring Brazil’s food security and agricultural strength, promoting independence from foreign fertilizer amidst global tensions.
The initiative is part of Brazil’s New Industrial Policy (NIB), targeting self-reliance in fertilizer production.
In addition, Senator Oliveira notes Brazil is the world’s fourth-largest fertilizer consumer, relying on 80% of imports.
Highlighting the urgency due to supply chain risks exposed by the pandemic and geopolitical events, Profert aims to address these issues.
The bill refines tax laws for fertilizers, setting eligibility criteria, demanding fiscal compliance, and offering tax reliefs for approved projects.
In short, with a five-year window for benefits, it includes provisions for project ownership transfer and shared liability among stakeholders.