✓ verbatim from the press
Brazil's Chamber of Deputies is set to vote Wednesday on Complementary Bill (PLP) No. 114/2026, which would authorize the government to use extraordinary oil sector revenues to reduce federal taxes on fuels. Deputy Marussa Boldrin (Republicans-GO) filed her opinion Tuesday recommending approval with modifications. ✓
Press quotes (1)
"A deputada Marussa Boldrin (Republicanos-GO) apresentou nesta terça-feira, 26, seu parecer ao Projeto de Lei Complementar (PLP) nº 114/2026, que converte a arrecadação extraordinária em redução proporcional de tributos federais sobre os combustíveis para mitigar os impactos econômicos decorrentes do conflito no Oriente Médio."
The bill, presented by government leader Deputy Paulo Pimenta (PT-RS), aims to mitigate economic impacts of the Middle East conflict on energy prices. According to the rapporteur's opinion, federal revenue waivers intended to reduce fuel taxes will be offset by four sources: royalties and special participation from oil and gas exploration; production-sharing regime revenues; oil and gas sector tax revenues; and Union dividends from sector companies. ✓
Press quotes (2)
"O projeto foi apresentado pelo líder do governo na Câmara, deputado Paulo Pimenta (PT-RS)"
"O texto também delimita quais são as receitas públicas alcançadas pela definição – todas vinculadas ao setor de óleo e gás, sendo elas: 1) royalties e participação especial da União decorrentes da participação no resultado da exploração de petróleo ou gás natural; 2) receitas oriundas do regime de partilha de produção; 3) receitas tributárias do setor de óleo e gás; e 4) dividendos da União recebidos de empresas do setor."
Boldrin's substitute preserves the original proposal's core but adds protections for biofuels. The text requires the Union to maintain the competitive differential between fossil fuels and biofuels verified before the war, meeting Constitutional Amendment 132. Every tax reduction on fossil fuels must be accompanied by proportional changes to biofuels. ✓
Press quotes (1)
"O parecer, apresentado na forma de substitutivo, preserva o núcleo da proposição original, ao autorizar que as renúncias de receitas decorrentes de atos do Poder Executivo Federal destinadas a mitigar os impactos econômicos do choque no mercado internacional de energia sejam compensadas pela receita extra do petróleo. Mas a relatora fez algumas modificações, como a imposição de que a União mantenha o regime fiscal favorecido aos biocombustíveis, com tributação inferior à dos combustíveis fósseis, mantendo seu diferencial competitivo mesmo com a subvenção. A medida atende à Emenda Constitucional 132."
The opinion also removes barriers to PIS/Cofins compensation in ethanol production, authorizing producers to use legitimately calculated credits to settle their own debts. The rapporteur argues the measure provides liquidity to taxpayers without creating additional waivers or budgetary impact. The bill also requires reductions to be incorporated into the Bimonthly Revenue and Primary Expenditure Assessment Report, demanding demonstration of fiscal impact. ✓
Press quotes (2)
"Além disso, o parecer tira a trava para compensação de PIS/Cofins na produção de etanol, autorizando a utilização de créditos apurados na compensação com débitos próprios. "A medida proposta não cria renúncia adicional - apenas autoriza a utilização de créditos legitimamente apurados na compensação com débitos próprios", escreveu a relatora."
"Conforme já constava do projeto original, a redução de alíquotas de tributos federais na importação e comercialização de combustíveis deverá ser incorporada ao Relatório Bimestral de Avaliação de Receitas e Despesas Primárias. Com isso, se coloca a exigência de que o governo demonstre o impacto das medidas e compensações no Orçamento do ano."
PLP 114/2026 was presented by Deputy Paulo Pimenta (PT-RS) and rapporteur Marussa Boldrin's (Republicans-GO) opinion was filed on May 26
The bill authorizes offsetting fiscal waivers on fuels with extraordinary oil sector revenues
Covered by only some sources, or where the accounts diverge.
Covered by only some sources (1)
Vote was scheduled for Tuesday (25th) but postponed to Wednesday (27th)
Conflicting versions (1)
Exact scheduled vote date
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What is the quantified fiscal impact of PLP 114/2026 in billions of reais and time horizon?
Why it's still unknown: Attempts to obtain the original bill text and rapporteur's opinion from the Chamber portal failed due to PDF timeouts. Press coverage does not cite specific figures.
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What is the current composition of support and opposition coalitions for the bill in the Chamber?
Why it's still unknown: Consulted sources do not report specific positions of parliamentary blocs or party leaders beyond the bill's author.
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Are there constitutional precedents from the STF regarding offsetting fiscal waivers with extraordinary sectoral revenues?
Why it's still unknown: Coverage does not address applicable constitutional tests or relevant jurisprudential precedents for this type of mechanism.
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Which civil society organizations or sector associations have taken positions on the bill?
Why it's still unknown: Sources are limited to the internal legislative process, without reporting positions from external stakeholders.