Brazil's House Weighs Final Tax-Reform Bill as Rapporteur Keeps Most Senate Changes

Overview

• Rapporteur Mauro Benevides Filho filed a December 12 report recommending approval with tweaks and said there are signs of consensus to minimize floor amendments in today's vote.
• The opinion preserves Senate provisions such as a 2% ceiling for the selective tax on sugary drinks and earlier monophase ICMS collection on naphtha, excluding the petrochemical sector.
• It removes the Senate’s municipal consolidated fiscal document and restores House language on which careers handle inspection and collection, as well as the ITCMD base for transfers of quotas or shares.
• The report reverts to the House text on microenterprises by allowing a longer window to choose staying on turnover-based taxation instead of full noncumulative rules, and it accepts the Senate’s clearer alignment of IBS and CBS involving CARF.
• PLP 108 completes consumption-tax regulation by establishing the IBS Governing Committee and detailed administrative rules, which states and municipalities say must be approved this week so the Finance Ministry can finalize regulations for the January 1, 2026 testing phase.