Flávio Bolsonaro proposes reviewing Brazil's tax reform

Senator Flávio Bolsonaro (PL-RJ) has advocated for a review of the tax reform approved under the Lula administration, should his side win the upcoming elections. Supported by campaign coordinator Rogério Marinho, the proposal includes suspending the implementation of the new system for at least one year to reassess key components.

Specific points targeted for revision include the Value Added Tax (IVA) rate, the transition period, tax benefits, the split payment mechanism, the selective tax, and the costs associated with funds created by the reform. While Bolsonaro has called for a lower IVA rate, he has not yet detailed a specific percentage or a plan to compensate for potential revenue losses.

The proposal has raised concerns regarding legal certainty, particularly for the Manaus Free Trade Zone. Although Bolsonaro previously described the zone as “sagrada” (sacred) during a 2026 visit, his earlier criticisms of its tax advantages during the reform's drafting have created apprehension among business leaders. Industry representatives fear that a suspension of the reform could reopen debates over fiscal incentives guaranteed to the region until 2073, increasing investment uncertainty.