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Country risk, from the local press

Brazil · Country watch

Lula Expands Fuel Subsidies, Agro Exports to US Drop

Lula's government expands fuel subsidies amid elections, while Brazil's agricultural exports to the US decline significantly.

· · 13 sources

The picture Deteriorating

Business conditions in Brazil are deteriorating with expanded fuel subsidies affecting energy costs and a significant drop in agricultural exports to the US due to tariffs. Political moves around tax reforms add to the uncertainty.

In this briefing Luiz Inácio Lula da Silva · Government of Brazil · Brazilian agriculture · United States · Flávio Bolsonaro · Brazilian tax reform

Regulation

  • energy
  • public-sector

Lula expands fuel subsidies, cuts gasoline taxes

a gas station with a gas station
Ferrari Soluções em Engenharia / Unsplash

The government of President Luiz Inácio Lula da Silva has expanded subsidies for gasoline, diesel, and ethanol, reducing the federal taxes on gasoline to zero. The subsidy for gasoline increased from R$ 0.63 to R$ 0.89 per liter, effectively eliminating PIS/Cofins and Cide taxes. Additional subsidies for diesel and ethanol were also announced. These measures come 16 days before the second round of the presidential election, according to O Globo and Terra.

Impact Fuel importers and distributors benefit from reduced costs due to the elimination of federal taxes on gasoline.

Sources: O Globo ↗, Terra ↗

Disruption

Nothing significant reported today.

Internal tension

Nothing significant reported today.

Safety & health

Nothing significant reported today.

Companies

Nothing significant reported today.

Markets

Nothing significant reported today.

Trade

  • agriculture

Brazil's agro exports to US drop 17.8% amid tariffs

Brazilian agricultural exports to the United States fell by 17.8% from January to September, according to CNN Brasil. The decline is attributed to American tariffs affecting products like bovine tallow and unmanufactured tobacco. Meanwhile, exports to other markets increased by 8.9%. The report highlights the impact of trade barriers on Brazil's agricultural sector.

Impact Agricultural exporters to the US face reduced sales due to tariffs, impacting revenue.

Sources: CNN Brasil ↗

Politics

  • finance
  • public-sector

Flávio Bolsonaro suspends split payment system

Senator Flávio Bolsonaro has announced a one-year suspension of the implementation of the split payment system as part of the tax reform, according to Jornal do Comércio. This move aims to adjust timelines, improve processes, and address company complaints. The suspension affects the cash flow of businesses that would have been impacted by the new tax collection method.

Impact Businesses gain temporary relief from the split payment system, affecting cash flow management.

Sources: Jornal do Comércio ↗

Also today in Brazil

Sources in this briefing

Sources: each headline links to the original article on the publisher's site.

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