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# Brazil passes Profert law offering $190 million in tax relief to boost domestic fertilizer output

Publication Date: 2026-09-03T17:00:00-04:00
Last Updated: 2026-09-03T04:02:27-04:00

Author: Kim Clarksen (https://www.fertilizerdaily.com/author/kimclarksen/)

Categories: [Markets](https://www.fertilizerdaily.com/markets/), [Asia &amp; Emerging Markets](https://www.fertilizerdaily.com/trade-and-policy/asia-emerging-markets/), [Potash](https://www.fertilizerdaily.com/markets/potash/), [Trade &amp; Policy](https://www.fertilizerdaily.com/trade-and-policy/)

![Brazilian flags waving. Official Federative Republic Brazil national flag at building](https://www.fertilizerdaily.com/wp-content/uploads/2026/09/brazilian-flags-waving-official-federative-republic-brazil-national-flag-at-building-stockpack-istock-scaled.jpg)

The new Profert law offers tax credits, BNDES financing and a mandatory domestic-content floor for fertilizer sold in Brazil.

Brazil's Senate has approved PL 699/2023, known as the Profert (Fertilizer Industry Development Program) law, establishing tax incentives, development bank financing, and a mandatory domestic-content floor for fertilizer sold in the country. The bill, which passed the Chamber of Deputies in May and the Senate on August 11, now awaits signature by President Luiz Inácio Lula da Silva.

Brazil spent roughly $15 billion on fertilizer imports in 2025, covering about 85% of its total consumption. The country imports approximately 96% of its potash — a nutrient essential for its dominant soybean and corn crops — from a small number of supplier countries. Profert combines three instruments: a tax credit for domestic fertilizer production, a BNDES credit line for sector infrastructure, and a domestic-content floor starting at 2% in 2027 and rising to 10% by 2037, with the potential to reach 30% depending on supply availability.

Brazil Potash, developer of the [Autazes potash project in Amazonas state](https://www.fertilizerdaily.com/20260613-brazil-potash-signs-28-year-power-mou-for-autazes-shifting-33m-to-operating-costs/), said a technical analysis shows the Profert tax exemptions, combined with existing SUFRAMA incentives in the Manaus Free Trade Zone, could reduce its construction costs by up to approximately $190 million on about $2.5 billion of initial capital expenditure. Eligibility will depend on a competitive selection process whose regulations have not yet been published.

Source: [GlobeNewswire](https://www.globenewswire.com/news-release/2026/08/17/3345971/0/en/brazil-senate-passes-law-to-incentivize-new-domestic-fertilizer-production-with-several-potential-construction-funding-benefits-for-brazil-potash.html)

Tags: [Brazil](https://www.fertilizerdaily.com/tag/brazil/), [Brazil Potash](https://www.fertilizerdaily.com/tag/brazil-potash/), [domestic production](https://www.fertilizerdaily.com/tag/domestic-production/), [food security](https://www.fertilizerdaily.com/tag/food-security/), [investment](https://www.fertilizerdaily.com/tag/investment/), [Latin America](https://www.fertilizerdaily.com/tag/latin-america/), [legislation](https://www.fertilizerdaily.com/tag/legislation/), [potash](https://www.fertilizerdaily.com/tag/potash/), [regulation](https://www.fertilizerdaily.com/tag/regulation/), [subsidies](https://www.fertilizerdaily.com/tag/subsidies/), [taxes](https://www.fertilizerdaily.com/tag/taxes/), [trade policy](https://www.fertilizerdaily.com/tag/trade-policy/)

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