Overview

• By unanimous vote, the Senate’s Economic Affairs Committee approved PLP 168/2025 to exclude loans and tax measures under MP 1.309/2025 from primary-balance targets and spending limits through 2026.
• The text authorizes federal contributions of up to R$1 billion to the FGO and up to R$2 billion to the FGI, plus roughly R$1.5 billion for export credit guarantees, and raises Reintegra refunds by up to an additional 3% for affected shipments.
• The government estimates R$9.5 billion of 2025–2026 impacts will sit outside fiscal targets, split between about R$5 billion for Reintegra and R$4.5 billion for guarantee funds, with the bill now headed to a Senate floor vote under urgency before returning to the Chamber.
• Separately, CAE chair Renan Calheiros will report an alternative Senate bill to exempt monthly income up to R$5,000 from IR using a 2019 Eduardo Braga text, aiming for a tight committee schedule so changes can take effect in 2026 under the annuality rule.
• Arthur Lira, the Chamber’s rapporteur on the government’s IR bill, says the proposal still requires broad negotiation on compensatory revenues and technical points such as table indexation, which has delayed a plenary vote despite approved urgency.