On Wednesday, September 25, the Brazilian Senate approved a complementary law that temporarily reduces the tax rates of PIS/Pasep and Cofins for the chemical and petrochemical industries, with a total estimated cost of R$ 3.1 billion to public finances. The proposal garnered significant support, receiving 59 votes in favor and only three against. The tax cut is set to take effect in 2026, with Braskem identified as the main beneficiary of the measure.

Of the total cost forecasted by the government for this fiscal benefit, R$ 1.1 billion had already been accounted for in the Union Budget for 2026. The remainder of the cost will be funded through government revenue generated from the reduction of other tax benefits. Notably, the current proposal will not be subject to the limits imposed by a revision of differentiated tax rates that was approved the previous year and came into effect in January.

The proposal had previously passed in the Chamber of Deputies and now awaits presidential sanction. Senator Daniella Ribeiro (PP-PB), who served as the rapporteur for the measure, defended the proposed tax cut for the chemical industry, highlighting the importance of fiscal incentives in promoting growth and sustainability within this sector. The approval signals regulatory support for significant players like Braskem and indicates the government's commitment to boost the chemical industry in Brazil.