The report represents an early step in a reform considered crucial by President Luiz Inacio Lula da Silva's administration. Lawmakers will now craft a formal text in greater detail to be put to a vote. Congressman Aguinaldo Ribeiro, the lawmaker in charge of the working group report, said the lower house of Congress would vote on a bill in the first week of July, citing a timeline approved by House Speaker Arthur Lira. This adjustment is expected to benefit wealthier and more populous states, and the working group proposed a transition period of "some years" for implementation. Under no circumstances will there be an increase of the tax burden," the report said.

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Persons: Luiz Inacio Lula da Silva's, Aguinaldo Ribeiro, Arthur Lira, Marcela Ayres, Jamie Freed Organizations: Lawmakers, Thomson Locations: BRASILIA