Overview

• Chamber-approved text lifts the monthly exemption to R$5,000, phases relief up to R$7,359, and sets a 10% minimum rate for incomes above R$50,000, with backers saying it would benefit about 11 million people.
• The Senate Economic Affairs Committee opened hearings by taking testimony from workers and is working with updated data from the Federal Revenue and the Senate’s consultancy, with a report targeted for late October.
• The Finance Ministry and Arthur Lira assert the package is fiscally neutral, while congressional and Senate technicians project a shortfall of R$6–8 billion in 2026 and up to R$16.2 billion over three years.
• A clause preserving exemption for dividends distributed through 2025, including past undistributed stock, is flagged as a main cost driver, with one private estimate of roughly R$6 billion in lost revenue.
• The government seeks sanctioning in 2025 so the new brackets apply to 2026 filings, and Renan is weighing trimming Chamber additions or shifting them to separate bills to keep the core text moving.