Renan Says Senate Will Amend Income Tax Bill Without Returning It to the Chamber

Overview

• Presiding over CAE hearings, Renan Calheiros signaled a rapid report that will change the Chamber-approved text while keeping the process in the Senate.
• Renan said the Senate will suppress alleged unconstitutional items and may split contested provisions into a separate bill to avoid sending the core text back.
• The Chamber’s version raises the monthly exemption to R$5,000, sets a 10% minimum effective tax for annual incomes above R$1.2 million, costs about R$30 billion a year, and would benefit roughly 11 million taxpayers.
• Federal Revenue chief Robinson Barreirinhas argued the reform rebalances the system toward poorer Brazilians and that dividend taxation and quarterly federal transfers would offset any subnational losses.
• The National Confederation of Municipalities questions whether compensation is sufficient, and deputies warn that Senate changes followed by presidential sanction could invite court challenges.