BRÉSIL PERSPECTIVE

The Brazilian press is deeply divided over the tax reform, reflecting the Lula/Bolsonaro polarization structuring the entire media landscape. Folha de São Paulo hails 'the most progressive reform since the 1988 Constitution,' noting the income tax exemption for workers earning up to 5,000 reais per month removes 15 million Brazilians from the tax rolls. The unanimous vote of 493 deputies is presented as a rare moment of consensus in a fragmented Congress.

Estadão, more conservative, sounds the alarm on cost: 31.2 billion reais ($6 billion) in lost fiscal revenue in 2026, in a context where public debt is expected to reach 95% of GDP and the primary deficit remains chronic. The Selic at 12.25% and inflation at 4.1% make credit prohibitive for businesses and households.

O Globo adopts a middle position, acknowledging the social justice dimension while questioning fiscal sustainability. The progressive minimum tax on annual incomes above 600,000 reais (reaching 10% above 1.2 million) is presented as a necessary but insufficient counterpart to fill the fiscal hole.