Archive · 8 Oct 2026
Flavio Bolsonaro Pledges Review of Lula-Era Taxes
Flavio Bolsonaro is running against President Luiz Inácio Lula da Silva in Brazil’s presidential runoff.
Bolsonaro says Brazil’s tax system is too complicated and that some planned taxes could be too high.
He wants to review parts of Lula’s tax policies, including taxes on dividends and crude-oil exports.
He also wants to reduce payroll taxes so workers keep more of their earnings.
Lula supports the new consumption-tax system and says his tax plans aim to reduce unfair advantages and inequality.
Both candidates have also promised to help people who owe a lot of household debt.
Bolsonaro says his government would use Caixa Econômica Federal to refinance those debts.
The government has separately announced a debt-restructuring auction with 15 billion reais allocated to buy up to 150 billion reais of delinquent loans.
Senator Flavio Bolsonaro said his team is studying constitutional changes to parts of Brazil’s planned consumption-tax reform, arguing the tax burden could be too high.
He said he supports modernizing the complex tax system, reducing payroll taxes, and leaving workers with more of their income.
Economic adviser Daniella Marques said a Bolsonaro administration would review measures including the dividend tax, crude-oil export tax, and increases to the Financial Transactions Tax.
Bolsonaro said he would eliminate the 12% crude-oil export tax and proposed buying and refinancing debts held by over-indebted consumers through Caixa Econômica Federal.
President Luiz Inácio Lula da Silva’s platform backs the consumption-tax overhaul and tax changes it says would promote tax justice and reduce inequality; Lula has also pledged debt purchases.
- Who
- Brazilian presidential candidate Senator Flavio Bolsonaro, President Luiz Inácio Lula da Silva, and Bolsonaro adviser Daniella Marques.
- What
- Bolsonaro pledged to review several Lula-era tax measures and proposed refinancing household debt.
- When
- The report says Bolsonaro’s rivals will meet in an October 25 runoff; the government plans a debt auction in November.
- Where
- Brazil.
- Why
- Bolsonaro argues that the tax system is too complex and the planned consumption tax could create an excessively high tax burden; he also proposed debt relief for over-indebted consumers.
Flavio Bolsonaro’s position
Lula’s position
Consumption-tax reform
Flavio Bolsonaro’s position
Bolsonaro says aspects of the planned reform should be reviewed, arguing its effective tax rate could be too high.
Lula’s position
Lula’s platform supports implementing the consumption-tax overhaul approved during his administration.
Tax policy and fairness
Flavio Bolsonaro’s position
Bolsonaro proposes reviewing a range of Lula-era taxes, reducing payroll taxes, and eliminating the crude-oil export levy.
Lula’s position
Lula’s platform seeks to reduce tax distortions and privileges; his administration supports cutting exemptions and eliminating incentives it considers inefficient.
Household debt
Flavio Bolsonaro’s position
Bolsonaro proposes that the government buy consumer debt and refinance it through Caixa Econômica Federal, with new credit lines also available.
Lula’s position
Lula has also promised government debt purchases; the government announced a November auction to buy and restructure household debt.
- Consumption-tax reform
- Approved under Lula in 2023; it is set to begin taking effect next year and would consolidate multiple levies into a dual value-added tax.
- Estimated VAT rate
- Economists estimate the effective rate at about 28%; the government has not finalized it.
- Crude-oil export tax
- The 12% levy was introduced by Lula’s government this year; Bolsonaro’s adviser said he would eliminate it.
- Other taxes under review
- The proposed review includes a dividend tax and increases to the Financial Transactions Tax on specified activities.
- Debt auction
- The government said it would spend 15 billion reais to buy up to 150 billion reais of delinquent loans in November.
- Runoff
- The report says Flavio Bolsonaro and Lula will face each other in an October 25 runoff.