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Aquiles Lins

Aquiles Lins is a columnist for Brasil 247, a commentator for TV 247, and the group's director of special projects.

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Extra monthly income in the worker's pocket will be a factor when evaluating Lula's government at the polls.

Income tax exemption up to R$ 5, approved in the Chamber by 493 votes, injects income into workers' pockets and strengthens the economy for 2026.

President of the Republic, Luiz Inácio Lula da Silva, during a visit to the Museum of the Amazon, the Gastronomic Center and the Bioeconomy and Innovation Park of Parque do Futuro II. Belém - PA. (Photo: Ricardo Stuckert/PR)

Workers earning up to R$ 5 per month will soon have direct financial relief. The proposal, approved by the Chamber of Deputies with 493 votes in favor, exempts this income bracket from income tax, ensuring that the money that previously went to the Federal Revenue Service will now reinforce household budgets. The bill now goes to the Senate, with the expectation of taking effect in 2026.

According to calculations by Sindifisco Nacional, someone earning R$ 5 will save R$ 312,89 per month. Annually, the savings exceed R$ 4. This extra amount will make a difference in daily life: it will go towards groceries, household bills, transportation, and children's schooling. This is not an abstract or distant change, but a measure that will be felt monthly by millions of families.

The scope of this policy is significant: 10 million Brazilians will directly benefit from the new exemption bracket, adding to the 10 million already covered by the changes made in 2023 and 2024. In just three years of government, 20 million people will have stopped paying income tax. This is the biggest change to the income tax table in recent decades and an achievement that will hardly go unnoticed when voters go to the polls in 2026.

The economic impact is also clear. The money that is no longer collected by the tax authorities doesn't just sit idle: it circulates. It goes to neighborhood businesses, strengthens local services, and stimulates production. Therefore, the measure not only improves disposable income but also helps sustain an economy that is already showing signs of recovery. It's a virtuous cycle: more income, more consumption, more growth.

The government also included measures to maintain fiscal balance. The proposal foresees a minimum tax of up to 10% for salaries above R$ 50 per month, in addition to taxing dividends sent abroad. The logic is simple: to relieve those who live on their salary and to tax more those who concentrate income. As Minister Fernando Haddad explained, “what we are doing is precisely social justice. (...) The great merit of this proposal is that it opens an avenue for us to discuss tax justice.”

From a political standpoint, the vote in the Chamber of Deputies was revealing. In the midst of a fragmented Congress, achieving near-unanimity around a proposal is rare. There were 493 votes in favor, a sign that the measure responds to a broad societal expectation. This consensus reinforces Lula's position: delivering direct income to millions of families is a trump card that will have a decisive weight at the polls.

The 2026 election, however, will not only be about re-electing the president. It will also be about altering the balance of power in Congress. The government needs a more solid base to advance structural reforms—from tax justice to industrial and social policy. The challenge will be to transform the recognition gained with measures such as the new tax exemption into greater progressive representation in the Chamber of Deputies and the Senate.

Ultimately, the political calculation is straightforward: workers will remember the extra money in their salary when they go to vote. The income tax exemption up to R$ 5 represents immediate relief, stimulates the economy, and strengthens the image of a government that keeps its promises.

* This is an opinion article, the responsibility of the author, and does not reflect the opinion of Brasil 247.