Brazilian President Luiz Inácio Lula da Silva has signed the National Health Industrial Complex law into effect, but exercised partial vetoes on three critical provisions that were central to the legislation’s economic framework.
The signed measure, designated as Law 15.471 of 2026, establishes a national strategy for health industry development but strips away key fiscal incentives and regulatory adjustments that industry lobbyists had championed.
The most significant veto targets tax exemptions for imports under the Mercosur Common External Tariff.
By rejecting this provision, the administration signals a reluctance to further erode customs revenue, even as it seeks to bolster domestic production capabilities.
This decision directly impacts the cost structure for pharmaceutical companies that rely on imported active ingredients and specialized equipment, potentially dampening the immediate financial benefits of the new industrial policy.
Lula also vetoed clauses related to the sale of reference drugs and technology transfer mechanisms.