LatinNews Daily - 13 August 2026

*Brazil’s senate has approved a government-backed bill to reduce federal taxes on diesel, biodiesel, gasoline, ethanol, and aviation fuel, which will now be submitted to the office of President Luiz Inácio Lula da Silva to be promulgated. According to the government, the loss of revenue resulting from the fuel tax breaks will be compensated for by a rise in revenue from the oil sector, with government estimates showing that in January-March 2026 federal tax revenue from crude oil and natural gas totalled R$28bn (US$5.4bn), up from R$9bn in the first three months of 2025. The legislation was first drafted to help mitigate the impact of global fuel price shocks resulting from the conflict in the Middle East, although other provisions unrelated to fuels were later added to the bill. These additional measures include tax benefits for Fifa, with Brazil due to host the 2027 Women’s World Cup, as well as tax incentives for the critical minerals sector. With President Lula himself visiting congress yesterday to meet with senate president Davi Alcolumbre, the government also negotiated with lawmakers to add updated fiscal discipline measures to the bill, with new mechanisms aimed at enforcing the government’s existing spending limits.

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