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Proposal Calls for New Tax on Large Technology Companies, Distribution of Part of Collected Amounts to Users and Investments in Inclusive Digital Infrastructure in Brazil. Measure May Impact X, Google, Meta, and Other Giants.
Federal Deputy Guilherme Boulos (PSOL-SP) presented, on July 23, 2025, Complementary Bill 157/2025, which establishes a new tax on large technology companies operating in Brazil.
Informally dubbed the “Elon Musk Law”, the proposal targets companies like X (formerly Twitter), Google, Facebook, Instagram, and other digital platforms, aiming to create a system of direct financial compensation for Brazilian users through what is referred to as the “Pix of Big Techs”.
The measure was announced amid rising economic tensions between Brazil and the United States, a context heightened by recent statements from former U.S. President Donald Trump.
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According to Boulos, the project seeks to ensure national sovereignty over Brazilian data and guarantee that part of the profits obtained by sector giants, based on the use of Brazilian users’ personal information, returns to national society in the form of investments and income transfers.
Digital Social Contribution: What Does the ‘Elon Musk Law’ Propose?
The text of PL 157/2025 proposes the creation of the Digital Social Contribution (CSD), a new tax aimed at technology companies with annual gross revenue exceeding R$ 500 million and that operate in Brazil by exploiting local user data.
The stipulated rate is 7% on the total amount collected by companies that meet this criterion.
According to the text, the tax will mainly affect foreign platforms, especially those based in the United States, that profit from digital advertising using information from Brazilian citizens.
According to the proposal, half of the amount collected from the new contribution will be distributed directly to the users of the taxed platforms, through a mechanism yet to be regulated, but reminiscent of the instant bank transfer model already established by Pix.
This point earned the project the popular nickname of “Pix of Big Techs”.
Additionally, 25% of the resources obtained must be allocated to the newly created Fund for Inclusive Digital Infrastructure (FIDI), with the mission of financing public data storage and protection systems.
The remaining 25% will be directed to support programs to combat misinformation, protect personal data, and conduct independent audits of algorithms used by digital platforms.
Justifications, Risks, and International Context
Boulos argues that the growing economic and political power of the so-called big techs represents “serious risks to national sovereignty and democracy”, citing as an example the intensive use of personal data without clear reciprocation for Brazil.
The deputy also mentions concerns with the tax evasion practiced by some of these companies, which would be sending up to 36% of their profits to tax havens.
According to him, the Brazilian measure follows trends already adopted by countries like Spain and Portugal, which enacted legislation to tax the exploitation of digital data by large global companies.
The bill further details that the new charge will only apply to companies engaged in digital advertising and data extraction, not affecting small and medium-sized technology companies.
“We will not let big techs impose U.S. interests over Brazil”, declared Boulos in a social media post, reinforcing the confrontational nature against foreign influence over the Brazilian digital environment.
Destination of Collected Amounts and Functioning of the Pix of Big Techs
As detailed in the text, the central objective of the “Pix of Big Techs” is to return part of the value generated by the exploitation of data to the users of the digital platforms themselves.
The transfer mechanism should function similarly to Pix, the electronic instant transfer system created by the Central Bank of Brazil in 2020, facilitating the arrival of amounts directly to the accounts of Brazilian citizens registered on the taxed platforms.
The other resources will be allocated both to strengthen public data infrastructure and to develop actions to combat misinformation and ensure transparency in the use of algorithms.
The Fund for Inclusive Digital Infrastructure, as planned, aims to expand secure internet access and protect personal information of Brazilians, contributing to the development of national solutions in information technology.
Meanwhile, the programs to combat fake news and algorithm auditing will receive funding to finance initiatives for information verification, training of media professionals, and oversight of practices adopted by digital platforms, aiming to ensure greater transparency and responsibility in content dissemination.
Processing of the Project and Next Steps in the Chamber
The Complementary Bill 157/2025 has been filed in the Chamber of Deputies and will be forwarded for analysis by the responsible technical committees.
The process includes evaluation of constitutionality, analysis of merit, and possible public hearings to discuss the impact of the proposal on the Brazilian digital environment and the national economy.
If approved in all legislative stages, the text provides for a 180-day adaptation period after its publication for the new law to come into force.
Interested parties can access the full content of the project and follow its progress on the Chamber of Deputies’ website, where it is also possible to submit suggestions or track statements from sector representatives.
And you, do you believe that the ‘Pix of Big Techs’ can transform Brazilians’ relationship with digital platforms and strengthen national sovereignty in the digital environment? Share your opinion in the comments.
Como tem Minio por aí mesmo quando tentam criar uma lei que iria beneficiar quem utiliza as Bigtechs e não recebe nada para dar lucros astronômicos para esses parasitas só tem quase pessoas reclamando da iniciativa do Boulos. Daqui um pouco esses mesmos que estão reclamando irão querer que o Brasil volte a ser colônia de outros países e que volte o tempo da escravidão.
Por que todo **** quer pegar aquilo que não lhe pertence? Que outros cérebros lutaram pra conquistar? Roubo na cara dura! Só isso que essa esquerda sabe fazer. TAXAR TAXAR TAXAR
Esse Boulos e um comédia mesmo, ainda bem que tem parlamentares conscientes ainda, porque esse aii só ladeira abaixo
A iniciativa do deputado federal Boulos é de proteger a sociedade,dar maior segurança e garantir dividendos dos bilhões que levam todos os anos . Ainda tem um bando de bolsoloides doentes, defendendo esses bilionários.