Overview
- Vice President Geraldo Alckmin said he is neither for nor against the levy and will support whatever President Lula decides.
- The remark followed days after he defended the charge as a way to protect factory jobs and balance competition with cheap imports.
- Inside the government, Lula called the tax unnecessary and Institutional Relations Minister José Guimarães urged repeal, saying it hurt the administration’s standing.
- Chamber President Hugo Motta signaled he will take up the topic but asked for a budget impact review, noting the 20% charge on purchases up to US$50 brought in about R$5 billion last year.
- Business and worker groups from 67 associations pressed Lula to keep the levy and labeled repeal an election move that would harm local retailers and jobs.