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Chamber to Vote on R$5,000 Income Tax Exemption as Lira Sends Compensation to the Floor

Debate focuses on a 10% minimum for high incomes with carve‑outs in play.

Overview

  • Arthur Lira said the plenary will decide how to fund the relief and whether to allow exceptions to the 10% minimum tax on top earners, with the vote slated for Wednesday.
  • The draft lifts the zero‑tax bracket to R$5,000 a month with partial relief up to about R$7,300, while the exact income thresholds for the minimum levy remain under negotiation.
  • Agribusiness leaders pressed for protections during a meeting of the farm caucus that was inadvertently streamed, and Lira vowed to avoid losses for states and municipalities.
  • Left and center‑left parties met in Brasília to coordinate against amendments that could dilute progressivity, as protests and airport actions pushed deputies to approve the bill.
  • Senator Renan Calheiros accused Lira of weakening the compensation design and pledged to defend the Senate‑approved text, while a proposal to raise the CSLL on large banks gained traction.