Overview
- Ribeiro, the Chamber’s majority leader and 2023 tax reform rapporteur, will write the report guiding the scope of cuts and the periodic review of benefits.
- The proposal requires minimum reductions of 5% in 2025 and 5% in 2026, allowing sector-specific rates as long as the overall cut reaches at least 10%.
- The text bars creating or extending federal tax, financial or credit incentives unless there is a simultaneous offsetting cut of equivalent value.
- With urgency granted months earlier, the measure can bypass committees and be taken directly to the plenary, with leaders signaling a possible vote before the recess.
- Exemptions include Simples Nacional, the Manaus Free Trade Zone and other free-trade areas, regional development financing, nonprofits, basic food items, higher-education scholarships, and incentives for IT and semiconductors, with the author estimating a R$ 19.76 billion gain in 2026.