Senate approves bill restoring exemptions for entities and disabled

The Senate plenary approved on Wednesday (27) a bill that restores tax benefits to non-profit entities and reinstates full exemption on vehicle purchases by people with disabilities.

The text, proposed by Senator Flávio Arns (PSB-PR), now goes to the Chamber of Deputies for review. It expands exceptions to the 10% linear cut in tax waivers approved in December 2025, including other third-sector entities beyond OSCIP and OS.

The rapporteur, Senator Professora Dorinha (União Brasil-TO), noted that the measure corrects unequal treatment and strengthens an exemption already provided for in a February Federal Revenue normative instruction this year. Senator Damares Alves (Republicanos-DF) defended the amendment on vehicles, stating that the cars serve for work and mobility of people with disabilities.

The project also authorizes an increase of up to R$ 500 million in defense spending outside the budget target for 2026.

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Illustration of Congress approving the national reconstruction bill with tax reforms.
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The National Reconstruction project concluded its legislative process this week, incorporating corporate tax cuts, reintegration and a tax invariability clause.

Brazil's Senate shows resistance to the political party benefits bill approved by the Chamber of Deputies on Tuesday. Allies of President Davi Alcolumbre indicate there is no commitment to a vote on the proposal in the upper house. Senators report surprise at the text and note the negative climate in an election year.

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President Luiz Inácio Lula da Silva sanctioned the law establishing the Marco Legal do Transporte Público Coletivo on Sunday (14), with vetoes to sections that outlined financing obligations for states and municipalities.

The Senate Finance Commission approved the Reconstruction bill yesterday by three votes to two. The initiative advanced with only officialist support.

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The ministries of Finance and Planning released a joint note on Thursday (11) estimating an annual impact of R$111 billion from nine bills under consideration in Congress. The largest costs would come from raising the Simples Nacional ceiling and renegotiating rural debts.

The Senate approved on Tuesday (14) PEC 14/2021, which creates differentiated retirement rules for community health agents and endemic disease combat agents. The text passed in two rounds by 73 votes to 1 and proceeds to promulgation.

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Chile's Chamber of Deputies sent the government's major tax reform bill to the Senate after approving its core measures, including a gradual cut in the corporate tax rate from 27% to 23%.

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