From valorinternational · Nov 13, 2026 · 1m 40s

Fiscal package faces business backlash over burden on companies

Brazil's fiscal package sparks business opposition as tax cuts and spending controls raise concerns.

In brief

Brazil's fiscal package sparks business opposition as tax cuts and spending controls raise concerns. Brazil's fiscal package faces business backlash over tax burden shifts, with industry groups opposing spending cuts and tax credit restrictions. Originally reported by valorinternational.

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Business groups criticize fiscal package

Business associations across Brazil’s retail and industrial sectors have criticized the fiscal package proposed by the government for shifting part of the burden of fiscal adjustment onto private companies.

Retail groups acknowledge positive aspects

Fábio Bentes, of the National Confederation of Trade in Goods, Services, and Tourism (CNC) — Foto: Leo Pinheiro/Valor/20/08/2025

While retail groups acknowledged some positive aspects of the proposal, industry representatives strongly opposed cuts to tax incentives and restrictions on the use of tax credits.

Senate approves bill text

The Senate approved the main text of the supplementary bill on Thursday (12). On Tuesday (17), senators will consider amendments, or proposals to modify the bill.

CNC chief economist highlights concerns

Fábio Bentes, chief economist at the National Confederation of Trade in Goods, Services, and Tourism (CNC), said the package signals a commitment to balancing public accounts but places too much emphasis on increasing revenue at…

CNI criticizes tax burden shift

The National Industry Confederation (CNI) argued that the measure increases the tax burden and shifts part of the cost of the fiscal adjustment onto the productive sector.

CNI details tax credit restrictions

The CNI criticized restrictions on the offsetting of tax credits, cuts to tax incentives and a ban on using revenue from the oil export tax.

Fiesp and Fiemg express concerns

The São Paulo State Federation of Industries (Fiesp) argued that the measure reduces funding for innovation and creates legal uncertainty by restricting tax credit offsets.

The essence

Brazil's fiscal package faces business backlash over tax burden shifts, with industry groups opposing spending cuts and tax credit restrictions.

Read the original on valorinternational

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