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Senate Fast-Tracks Vote on R$5,000 Income Tax Exemption

The Finance Ministry now deems the plan fiscally neutral, clearing the way for a swift vote on the Chamber-approved text.

Overview

  • Senator Renan Calheiros is set to present his report in the Economic Affairs Committee on Tuesday, with a committee vote planned the same day and a plenary vote scheduled for Wednesday.
  • Renan signals he will keep the Chamber’s version to avoid sending the bill back, aiming to dispatch the measure directly to presidential sanction.
  • Alongside the IR bill, Renan placed a companion proposal on the CAE agenda to raise taxes on betting firms, banks and fintechs, with revenue projected at R$4.98 billion in 2026 and about R$18 billion through 2028.
  • President Lula has sanctioned Law 15.246/2025, removing the LDO’s five-year limit and allowing income tax rule changes, once approved, to be permanent.
  • The proposal passed the Chamber with 493 votes in favor and, if approved this year, would take effect in 2026, as Arthur Lira publicizes his role in Alagoas while competing for political credit with Renan.