The Federal Senate of Brazil approved the bill 14/2026, which raises the fiscal incentives for the chemical and petrochemical sectors from 1.1 billion to 3.1 billion reais. This decision comes as a major boost for the Polo Industrial de Cubatão in São Paulo, a region that has been facing challenges such as factory closures and job losses. The bill was approved with a significant majority of 59 votes in favor to just 3 against and is now awaiting presidential sanction.

Presented by Deputy Carlos Zarattini of the Workers' Party and revised by rapporteur Afonso Motta from the Democratic Labor Party, the legislation establishes a temporary tax regime that will remain in effect until 2027, when the new Program for Sustainability of the Chemical Industry (Presiq) is set to begin. Motta explained that the proposed increase in incentives is essential for the chemical industry, which has been suffering from soaring natural gas prices and the influx of imported products, threatening local industries.

By extending the fiscal support, the Brazilian government aims to revitalize a sector vital for the economy and safeguard employment in regions heavily reliant on these industries. The implementation of these incentives is seen as crucial in combating the economic hardships faced by workers and companies within the chemical sector, thereby reinforcing the government's commitment to sustaining industrial growth and job security.