The bill passed both houses of parliament and now awaits the President’s ratification.
Brazil’s Congress approved a bill on 18 November 2025 aimed at curbing public spending and tightening rules on companies’ use of tax credits.
Among its key provisions, the law bars tax credit compensations that are not linked to a company’s economic activity and introduces stricter oversight of social benefits for fishermen during periods when fishing is restricted.
These measures had previously lapsed after a presidential decree expired without legislative approval.
The bill, which passed the lower house in October and was approved by the Senate on 18 November, now awaits President Luiz Inácio Lula da Silva’s ratification.
These measures were originally part of a broader executive order issued by Lula earlier this year. Still, they remained inactive after Congress allowed the decree to expire, leading to a fiscal deadlock.
