Flavio Bolsonaro Pledges Tax Overhaul if Elected President

Presidential candidate Flavio Bolsonaro announced plans to conduct a broad review of tax measures enacted under President Luiz Inacio Lula da Silva if he wins the October 25 runoff. Bolsonaro intends to study constitutional amendments to revise the 2023 consumption-tax reform, arguing that the estimated 28% VAT rate is excessively high.

His proposed fiscal agenda includes reducing payroll taxes, eliminating a 12% tax on crude oil exports, and reversing increases to the Financial Transactions Tax on corporate credit and foreign-exchange transactions. Additionally, Bolsonaro pledged to use the state-owned lender Caixa Economica Federal to buy and refinance household debt.

These proposals contrast with the platform of President Luiz Inacio Lula da Silva, which emphasizes reducing inequality and promoting tax justice. The Lula administration has already implemented a tax on dividends to fund income tax exemptions for middle-income earners. To address consumer debt, the government has scheduled a November auction to spend 15 billion reais to restructure up to 150 billion reais of delinquent household loans.