President Luiz Inácio Lula da Silva should announce this Wednesday a gasoline tax break to replace the fuel subsidy, whose provisional measure (MP 1358/2026) loses validity today. The change represents a switch from payments to companies (subsidy) to reducing taxes (tax break). Government technicians were working to finalize a decree that would reduce at least PIS and Cofins taxes on gasoline.
The size of the tax cut was still being finalized by government technicians. There was a possibility that the tax break could surpass the R$ 0.44 per liter currently granted as a subsidy to gasoline. The race in the economic area was to finalize a text to be signed by the president that Wednesday morning, before his trip.
The Executive branch was raising arguments for the possibility of making a larger tax benefit, including the worsening of global oil refining capacity due to attacks on refineries, in addition to the rise in oil prices itself. No further details were provided about the trip Lula would take after signing the decree.
