Government likely to unveil diesel subsidy next week

“Today, I am working with the idea of maintaining the current subsidy at R$0.35, but that still needs to be assessed,” he said. “Every day matters because [Brent prices] have been highly volatile, and we need to calibrate the measure, including to protect fiscal accounts,” he added.

The diesel subsidy will be necessary because the complementary bill that would allow the government to grant tax exemptions on fuels has not yet been approved by Congress.

Durigan stressed that the government will not use the additional revenue generated by oil prices to improve fiscal results. The goal, he said, is to mitigate the effects of the war on the population and economic sectors.

“My role here is not just about fiscal policy. Of course, that is my primary role—to take care of the country’s fiscal situation—but not only that. I also need to ensure the country appears in the UNDP [United Nations Development Programme] report, as happened yesterday [Tuesday] for the first time, reaching the level of very high human development, which involves longevity, education, and income.”

On Monday, the UNDP announced that Brazil had reached the category of very high human development for the first time in history, with an index of 0.805 in 2024.

In the interview with Valor, the minister also said the Finance Ministry is working on a proposal to raise the revenue ceiling for qualification as an Individual Microentrepreneur (MEI), in line with an agreement reached between the federal government and the Chamber of Deputies. The adjustment would apply only to MEIs, not to companies under the Simples Nacional tax regime. As a result, the fiscal impact would remain below R$10 billion, according to Durigan.

“We will implement this [increase in the MEI ceiling] gradually. I still don’t know whether it will happen in 2027 or 2028, but probably along those lines,” he said. Currently, the annual revenue ceiling for MEIs is R$81,000.

According to the minister, the proposal would also allow MEIs to hire two employees instead of only one, as currently permitted. In addition, he said he would like to use the bill to correct other distortions, such as requiring small companies that hire more than five MEIs to contribute to the social security system.

“It’s something I can take to Speaker Hugo,” he said, referring to Brazil’s Lower House speaker, Hugo Motta.