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Senate Panel Backs R$5,000 Income Tax Exemption as Chamber Sets Vote Next Week

A floor vote is scheduled for Wednesday, with the government supporting a R$5,000 threshold funded by higher taxes on top incomes.

Overview

  • The Senate Economic Affairs Committee approved the alternative bill 21–0 in a terminative vote, allowing it to move straight to the Chamber unless appealed.
  • Chamber president Hugo Motta said the House will vote on the measure next Wednesday regardless of any debate over a separate amnesty proposal.
  • Arthur Lira’s report keeps a 10% withholding tax on remittances abroad and adds progressive surcharges for annual incomes above R$600,000, rising to 10% over R$1.2 million.
  • Finance minister Fernando Haddad praised Lira’s handling of the text, while negotiators still face unresolved questions about fiscal compensation and possible opposition pushes to lift the exemption to R$10,000.
  • The expanded exemption to R$5,000 is estimated to reach about 10 million people, and Senator Renan Calheiros accused Lira of using the issue as leverage in other disputes.