Tax exemption for those earning up to R$ 5 has broad support on social media, research shows.

247 - The bill that changes the Income Tax rules, submitted to the National Congress by the Federal Government last week, was received in a widely positive way by Brazilians on social media. According to a survey carried out by FSB/Nexus last Friday (21), 87% of the comments on Facebook were in favor of tax exemption for those who receive up to R$ 5 per month, with a gradual reduction in the rate up to R$ 7. The proposal also establishes that high incomes — above R$ 600 per year — will pay more tax, correcting distortions that currently allow these taxpayers to pay less than 10%.

The research also indicates that, on the X network (formerly Twitter), 82% of users approved of the initiative, while on Instagram, support reached 79% among profiles that commented on the topic. The debate sparked by the proposal highlighted a growing demand for greater tax and social justice in the country, a central goal of the reform advocated by the government of President Luiz Inácio Lula da Silva.

In an interview with Agência Brasil, Clara Zanon Brenck, a professor of Economics at the Federal University of Minas Gerais (UFMG), emphasized that the measure aligns Brazil with standards adopted by developed countries: “More egalitarian countries, such as the most developed in Europe, tend to tax in a more progressive way. By making this change, Brazil will move closer to these countries.”

Data from the Ministry of Finance indicates that the proposal will allow approximately 10 million Brazilians to stop paying income tax. This tax waiver is estimated at R$ 25,84 billion, but will be offset by taxing approximately 141,3 high-income individuals. To achieve this, the tax base will now include currently exempt earnings, such as dividends—profits distributed by companies to their partners and shareholders.

The Treasury estimates that nine out of ten Brazilians who currently contribute to income tax will have total or partial exemption. Of the total number of taxpayers, more than 26 million—equivalent to 65%—will no longer pay the tax. On the other hand, the new tax burden on high incomes will affect only 0,13% of taxpayers, which corresponds to 0,06% of the country's population.

Researcher Marcos Hecksher, from the Institute for Applied Economic Research (Ipea), linked to the Ministry of Planning and Budget, highlighted the importance of the reform in tackling inequality. “Making taxation more progressive, without so many exemptions and tax breaks for the wealthiest, is essential for reducing inequalities. This will allow the country to 'fulfill one of its fundamental objectives established in Article 3 of the 1988 Federal Constitution, which is to reduce social and regional inequalities',” said Hecksher.