Chamber votes on income tax exemption up to R$ 5 and Gleisi defends the fight against the "great injustice" of inequality.
The bill, which is to be voted on this Wednesday, is the "first step towards tax justice," says the minister.
247 - The Minister of Institutional Relations, Gleisi Hoffmann, highlighted this Wednesday (1st) the importance of the vote, in the Chamber of Deputies, on the project that expands the income tax exemption range for those who receive up to R$ 5 per month. The proposal, according to her, represents progress in the search for greater tax justice in a country marked by profound social inequalities.
Gleisi emphasized that the measure corrects inequalities and addresses one of the greatest symbols of privilege in the country: "It is the first step towards tax justice in a country historically marked by inequality and the privileges of a tiny fraction of the population."
Relief for millions and taxes for the wealthiest.
According to the minister, the proposal sent by President Luiz Inácio Lula da Silva will benefit more than 16 million Brazilians, who will be exempt from or pay less tax starting in 2026. The text also establishes the creation of a minimum tax of up to 10% on the income of approximately 141 people who earn more than R$ 600 per year and currently pay little or nothing.
For Gleisi, the contrast between what salaried workers and large investors pay is unacceptable: "There is nothing that justifies charging up to 27,5% of salaries, while profits, dividends and financial returns currently pay an average of 2,5%."
The minister argued that approving the bill is also a commitment to the future: "By approving the bill presented by President Lula, Congress will contribute to overcoming a great injustice."
The design of the proposal
Currently, income tax exemption only applies to those earning up to R$ 3.036. If approved, the new text will increase this limit to R$ 5. Those earning between R$ 5 and R$ 7.350 will have a proportional discount.
Minimum taxation will begin in a tiered system for incomes above R$ 600 per year, and will be mandatory at 10% for those exceeding R$ 1,2 million. Deductions will be applied directly at the source of payment for salaries exceeding R$ 50 per month, with subsequent adjustments in the annual tax return.
Fiscal balance under debate
The bill's rapporteur, Representative Arthur Lira (PP-AL), declared to the newspaper The Globe The opinion seeks balance and fiscal sustainability: "Today the project is fair, with a small deficit for 2028, fully manageable by the government."
Preliminary studies indicate that tax revenue forgone could reach R$ 31,7 billion annually, while the new taxation of the super-rich is expected to generate around R$ 34 billion. The report also foresees exceptions for some investments, such as real estate funds and Fiagro, in addition to an automatic mechanism for adjusting the income tax table, which has been frozen for years.
Next Steps
If approved by the Chamber of Deputies and then the Senate, the new income tax model will come into effect in 2026. The federal government considers the measure central to easing the tax burden on the middle class and reducing privileges, while seeking to strengthen the progressivity of the system.
