Overview

• Hugo Motta confirmed the plenary session date and said the Chamber will prioritize the government’s bill rather than alternative proposals circulating in the Senate.
• The measure grants full exemption up to R$5,000 per month and reduces taxation for incomes up to R$7,350, with reporting estimating roughly 10 million beneficiaries.
• Fiscal compensation hinges on progressive add-on rates for very high earners starting above R$600,000 per year, reaching an extra 10% for income over R$1.2 million.
• The relator’s report cites a projected R$31.3 billion revenue loss in 2026 offset by R$34.1 billion from the high-income measures.
• Opposition leaders prepare amendments that could raise the exemption to R$10,000 or push compensation to 2027, setting up a contentious floor debate.