✓ verbatim from the press
The Chamber of Deputies approved on Wednesday (27) Bill 699/2023, which creates the Fertilizer Industry Development Program (Profert) with up to R$10 billion in tax incentives over five years. The bill, authored by Senator Laércio Oliveira (PP-SE) and reported by Deputy Júnior Ferrari (PSD-PA), was approved by symbolic vote with opposition from the PSOL-Rede Federation, Novo party, and the Missão caucus. ✓
Press quotes (1)
"O plenário da Câmara dos Deputados aprovou nesta quarta-feira, 27, o Projeto de Lei (PL) nº 699/2023, que cria o Programa de Desenvolvimento da Indústria de Fertilizantes (Profert). Embora a aprovação tenha ocorrido por votação simbólica, houve manifestação contrária da Federação PSOL-Rede, do Novo e da Missão."
Brazil imports about 85% of the fertilizers it consumes — a total of 45.5 million tons in 2025, according to Conab data cited by the press. External dependence affects nitrogen fertilizers (17.6 million tons imported), phosphorus (5.7 million), and potassium (13.9 million), with Russia, China, and Canada as main suppliers. The Russia-Ukraine conflict raised fertilizer prices from US$344 to over US$700 per ton in 2022. ✓
Press quotes (1)
"Dados da Conab, Companhia Nacional de Abastecimento, apontam que o Brasil mantém forte dependência externa no abastecimento de fertilizantes. As importações representam cerca de 85% da demanda anual do país. Em 2025, o consumo atingiu recorde de 45,5 milhões de toneladas."
The bill establishes tax credits of up to 20% of production costs, limited to R$2 billion per year between 2027 and 2031, and creates an emergency credit of R$1 billion for 2026 due to Middle East conflicts. The proposal also institutes mandatory mixing of domestic fertilizers — a floor of 2% starting July 2027, with targets between 10% and 30% by 2037 — and authorizes creation of BNDES financing lines for sector projects. ✓
Press quotes (1)
"Outro ponto do projeto prevê devolução de até 20% dos custos de produção na forma de crédito da CSLL, Contribuição Social sobre o Lucro Líquido, respeitando o limite de R$ 2 bilhões por ano e teto total de R$ 10 bilhões."
Since the text was modified in the Chamber through a substitute bill, the project now returns to the Federal Senate for new analysis. According to rapporteur Ferrari, the changes were necessary to adapt the text to tax reform taking effect in 2027, as original measures suspending PIS/Cofins and IPI "lost their purpose" with the new tax reality. ✓
Press quotes (1)
"No parecer divulgado pouco antes da votação, na forma de substitutivo, Ferrari pontuou que, com a reforma tributária, as medidas constantes do substitutivo anterior, centradas na suspensão e na redução a zero de PIS/Cofins, IPI e demais tributos que deixarão de existir, perderam o objeto, o que exigiu a adequação do texto legislativo à nova realidade tributária que vigorará a partir de 2027."
Brazil imports about 85% of consumed fertilizers, totaling 45.5 million tons in 2025
Russia, China and Canada are the main fertilizer suppliers to Brazil
Covered by only some sources, or where the accounts diverge.
Covered by only some sources (2)
Russia-Ukraine war raised fertilizer prices from US$344 to over US$700 per ton in 2022
Bill includes R$1 billion emergency financial credit for 2026 due to Middle East conflicts
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What will be the specific criteria for the federal government to select projects eligible for Profert benefits?
Why it's still unknown: The bill mentions government responsibility for selection, but detailed criteria were not disclosed by the press
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How will compliance with mandatory domestic fertilizer mixing targets be calculated and monitored?
Why it's still unknown: The proposal establishes minimum percentages but doesn't detail verification methodology
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What will be the Senate's position on the Chamber's modifications to the substitute bill?
Why it's still unknown: The project returns to the Senate but there are no public statements yet about the approved changes
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What are the details of the regulatory impact analysis to be conducted by the National Fertilizer Council?
Why it's still unknown: The text mentions the analysis will consider price impacts, but doesn't specify methodology or timeline