Overview

• Relator Arthur Lira said the government must be ready for changes as a "very intense" debate looms over how to compensate the larger exemption.
• Hugo Motta stated party leaders will examine the text this week, with the measure potentially reaching the Chamber floor next week.
• The proposal lifts the monthly exemption to R$5,000, creates a partial discount between R$5,000 and R$7,350, and imposes a progressive minimum tax of up to 10% on annual incomes above R$600,000.
• The opposition is preparing an amendment to delay the compensation mechanism to 2027, according to reporting, after abandoning a push to scrap it outright.
• Business groups are pressing for adjustments as Lira holds consultations with stakeholders, and the text must be approved by December 31 to take effect in 2026.