Brazil Publishes Law on Tax Reduction for Chemical Sector

A supplementary law providing for the reduction of contribution rates for PIS/Pasep and Cofins taxes levied on the chemical and petrochemical industry was published in Brazil official gazette.

• Benefit will have a budget limit of 2b reais for the sector and will be in effect from March until Dec. 31, and from April it will be subject to a 10% reduction, according to a filing from Braskem
  • It was also established that for 2026 there would be a sectoral ceiling of 1.1b reais for the use of the 1.5% incremental credit, linked to investments
• NOTE: President Luiz Inacio Lula ...