Brazil approves BRL 10 billion Profert programme

Brazil’s Federal Senate on 11 August approved the final text of the Profert bill (PL 699/2023), which will release up to BRL 10 billion ($1.85 billion) in tax-credit subsidies over five years to build new fertilizer plants or expand and modernise existing ones. The vote confirmed amendments made earlier by the Chamber of Deputies. The bill now goes to President Lula to be signed into law.

The programme will run from 2027 to 2031, with an annual cap of BRL 2 billion ($370 million) — unused amounts can be carried over to the following year. Federal tax credits will be awarded through a competitive procedure to companies producing synthetic or mineral fertilizers, their raw materials, bioinputs, biofertilisers and remineralisers. The credits will be treated as Social Contribution on Net Profits (CSLL) credits and can be used to offset federal tax debts or claimed as cash reimbursements. Total credits will be capped at 20% of a company’s Brazilian fertilizer production spend, and beneficiaries must maintain employment at or above the average level of the three months preceding the law’s entry into force.