Brazil’s Senate Votes on Country’s Self-Reliance in Fertilizers
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.
More: Brazil news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error