STF Suspends Pesticide Tax Case After Fachin Moves to Void Incentives

Overview

• Rapporteur Edson Fachin voted to annul clauses 1 and 3 of Convênio 100/1997 and a provision of Constitutional Amendment 132/2023, with effects only from publication.
• He argued the Constitution requires “environmentally calibrated” taxation and that incentives for pesticides infringe core environmental protection duties.
• Minister André Mendonça defended the agricultural-policy rationale for benefits and backed a 180‑day reassessment by federal and state governments using proportionality and toxicity criteria.
• The cases, filed by PSOL and PV, contest ICMS cuts for pesticides and also target a decree that set zero IPI rates for part of these products.
• The trial was halted and will resume with a statement from Minister Flávio Dino, will not continue on Nov. 6 because Fachin will attend COP30 in Belém, and will next be led by Vice President Alexandre de Moraes.