The government submitted a bill that authorizes a tax compensation mechanism, the STF reached a majority on the minimum subsistence threshold, and President Lula is expected to address the nation on Labor Day

BRAZIL POLITICS - Report 24 Apr 2026 by Murillo de Aragão and Cristiano Noronha

The federal government announced yesterday that it has submitted a complementary bill (PLP) to Congress authorizing a tax compensation mechanism. The proposal would allow extraordinary oil revenues to be used to subsidize reductions in fuel taxes. The Supreme Federal Court (STF) reached a majority yesterday to require the National Monetary Council to conduct periodic studies assessing updates to the minimum subsistence threshold (ADPFs 1005, 1006, and 1097). During Wednesday’s session (April 22), a consensus had already emerged regarding the regulation of the Over-Indebtedness Law (Law 14,181/2021). Next week, President Lula is expected to deliver a nationally broadcast address in connection with Labor Day. There is a possibility that new credit-related measures will be announced.

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