New restrictions under the 2025 Tax Reform may unlawfully limit benefits for people with disabilities, says civil society organization
The Instituto Nacional de Direitos da Pessoa com Deficiência Oceano Azul has filed a constitutional challenge (ADI 7779) before Brazil’s Supreme Federal Court (STF), questioning recent tax reform rules that govern vehicle tax exemptions for people with disabilities — particularly affecting individuals with autism.
The lawsuit targets specific provisions in Complementary Law No. 214/2025, part of Brazil’s broader Tax Reform, arguing that the new criteria unfairly restrict access to rights already guaranteed under Brazilian and international law.
What the New Law Says
The 2025 tax reform grants exemptions from:
- The IBS (Tax on Goods and Services), and
- The CBS (Social Contribution on Goods and Services)
for vehicles purchased by people with disabilities. However, the benefit:
- Applies only to vehicles priced up to R$ 200,000,
- With tax exemption capped at R$ 70,000, and
- Is limited to individuals with moderate or severe disabilities, excluding those with “mild” conditions.
Why the Autism Community Is Concerned
According to Oceano Azul, the restrictions discriminate against individuals on the autism spectrum who require Level 1 support — often labeled as having “mild” disabilities. The organization notes that many of these individuals face serious functional and social challenges despite not meeting the “moderate or severe” classification required by the new law.
The group argues that this classification:
- Violates constitutional principles, such as equality and human dignity;
- Contradicts the UN Convention on the Rights of Persons with Disabilities, ratified by Brazil in 2008;
- Ignores the complexity of autism, particularly cases where support needs are significant but not easily categorized.
Excessive Bureaucracy Is Also a Target
The lawsuit also criticizes increased procedural hurdles for proving eligibility. The new law’s emphasis on specific diagnostic categories and severity levels could disproportionately burden individuals with cognitive or mental disabilities, including many with autism spectrum disorder (ASD).
Oceano Azul warns that the diversity of support needs among autistic individuals is not reflected in the legislation, potentially excluding many from accessing essential tax relief.
What the Organization Asks of the STF
The lawsuit urges the Supreme Court to:
- Review the constitutionality of the tax reform restrictions;
- Strike down the severity-based eligibility criteria;
- Ensure that all people with disabilities — including those with autism — have equal access to tax exemptions on vehicle purchases.
If the STF accepts the challenge, it could set a major precedent for disability rights and tax equity in Brazil, especially concerning accessibility and mobility for individuals who face social or cognitive barriers.
Final Thoughts: A Critical Test for Inclusive Tax Policy
The challenge brought by Oceano Azul highlights how tax policy design must be inclusive, especially when it intersects with disability rights. As Brazil implements sweeping tax reforms, the case may define how benefits are distributed — and who is left out.
The decision could have a lasting impact on how autistic individuals and others with non-visible or cognitively based disabilities are treated within the Brazilian legal system.