Overview

• The rapporteur Arthur Lira said the Senate will have October through December to amend or return any approved text before a Dec. 31 deadline for sanction, noting the bill will not touch CSLL to avoid timing constraints.
• Lira warned that indexing the exemption bands could add R$80 billion to R$100 billion per year to costs and predicted a wave of amendments seeking indexation.
• Deputy Paulinho da Força filed an amendment to raise the threshold to R$7,000 and floated tying progress to the Anistia bill, a link rejected by Chamber president Hugo Motta and described as a 'loucura' by Finance Minister Fernando Haddad.
• The government estimates 10–11 million people would stop paying income tax and about 5 million more would receive discounts, with analysts noting the benefits would concentrate in the South and Southeast and have modest redistributive impact.
• Lira cited possible compensations under study, such as changes to the tax base for high-income minimum taxation, while ex-Revenue secretary Everardo Maciel criticized the draft as poorly written, saying he found 22 unclear items and doubting the feasibility of compensating lost revenue.