Brazil Senate Bill Targets Rural Land Tax (ITR) Reform

Senator Jayme Campos (União‑MT) introduced OPL 1.648/2024, a proposal to overhaul the calculation of Brazil's Imposto sobre a Propriedade Territorial Rural (ITR). The bill seeks an objective criterion for the land's naked value, exclusion of invaded, unproductive or ecologically sensitive areas, and replacement of the mandatory Environmental Declaratory Act with the Cadastro Ambiental Rural. It also obliges tax officials to provide technical justification for any charge above the taxpayer's declared value and mandates that municipalities receiving ITR revenues allocate them to rural infrastructure such as village roads and electrification.

During a public hearing before the Comissão de Assuntos Econômicos (CAE), representatives of the Receita Federal, municipal authorities and agro‑producers discussed the changes. Critics warned that the current system can lead to overvaluation of land and fiscal insecurity, while some noted constitutional concerns about linking tax revenues to specific field actions. The proposal, supported by the Senate’s rapporteur Jaime Bagattoli (PL‑RO) and various stakeholder groups, awaits further voting in the CAE.