Overview

• Senate Economic Affairs Committee approved, in a terminative vote, an alternative bill to exempt workers earning up to R$5,000 from income tax, allowing the text to proceed directly to the Chamber unless a senator appeals.
• The Senate plenary unanimously passed PLP 168/2025 to free roughly R$30 billion in loans and tax renunciations from the spending cap and some Fiscal Responsibility Law rules, expand guarantees (FGO, FGI, FGCE) and lift Reintegra cashback to up to 3%, leaving two amendments for a vote next week.
• The Chamber scheduled the government-backed IR bill for October 1, and its president Hugo Motta said the vote is not tied to the separate debate on an amnesty proposal.
• Finance Minister Fernando Haddad praised Arthur Lira’s relatoria, said he expects the income-tax measure to be sanctioned in October, and affirmed the Chamber text retains a 10% withholding on remittances and dividends sent abroad.
• Both proposals finance the relief with progressive surcharges on high earners, affecting annual incomes above R$600,000 and reaching 10% over R$1.2 million, as Renan Calheiros and Arthur Lira trade accusations over timing and tactics while some deputies discuss pushing the threshold higher.