Maranhão Reduces Grain Export Levy but Faces Scrutiny Over Exemptions for Out-of-State Producers

The state of Maranhão has officially reduced the Special Grain Contribution (CEG) applied to grain exports, lowering the rate from 1.8% to 1% on the value per metric ton. In addition, Provisional Measure 490/2025, published on May 21 in the state’s official gazette, provides a full exemption from the tax for grains produced in other states but transported through Maranhão.

Impact on Local Producers and Legal Uncertainty

While the move addresses demands from the agricultural sector, it does not resolve all controversies—some of which are already under review by Brazil’s Supreme Federal Court (STF). Leandro Genaro, a partner in the tax practice at Santos Neto Advogados, notes: “Producers in Maranhão remain at a disadvantage, and we are assessing the implications of the new measure.”

A key concern is Article 6 of the provisional measure, which waives the CEG for transactions carried out between January 1 and July 31, 2025. Genaro points to uncertainties regarding potential refunds for those who have already paid the tax and the status of judicial deposits, given that the levy is the subject of at least ten lawsuits filed by producers who had budgeted for the payment.

New Tax Rate Timeline

According to the provisional measure, the CEG is suspended until July 31, 2025. Between August 1 and December 21, 2025, the rate will be 0.5%, increasing to 1% as of January 2026.

Contradiction in Exemption for Out-of-State Grains

The exemption granted to grains such as soybeans, corn, millet, and sorghum, which originate outside Maranhão but pass through the state, has also drawn criticism. One of the stated purposes of the CEG is to fund improvements to the state’s road infrastructure, which is critical for transporting these commodities. “Grains produced in Maranhão are taxed, while those traveling the same roads but coming from outside are exempt—which seems contradictory,” the lawyer argues.

Given its complexity and implications for local producers and the regional economy, the measure is expected to remain at the center of ongoing legal and policy discussions.

Source: Portal do Agronegócio

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