Lula celebrates approval of the expansion of income tax exemption: 'historic'

President Lula (PT) celebrated on Wednesday night the 1st the approval in the Chamber of Deputies of the federal government's project that extends the Income Tax exemption for those who earn up to 5 thousand reais per month and provides for a minimum tax on the super-rich.

“ The Chamber of Deputies took a historic step today in building a fairer Brazil. by approving a project submitted by our Government to eliminate income tax for those earning up to R$5,000 per month and reduce the tax on those earning up to R$7,350, based on a minimum contribution from the very rich,” he said on social media.

Lula also thanked the Speaker of the House, Hugo Motta (Republicans-PB), and the bill's rapporteur, Federal Representative Arthur Lira (PP-AL). "This is a victory shared by the Brazilian government, the representatives, and social movements," he wrote.

The House passed the bill unanimously, exceeding the government's own projections, which deployed a riot police force to defend the measure. The bill now heads to the Senate, where it is also expected to be treated as a priority.

With the significant vote, Lula expressed optimism about the progress in the Upper House: “I am certain that the proposal will also have broad support in the Senate,” he added.

According to government calculations, the change should benefit more than 16 million taxpayers starting in 2026, either through full exemption or a reduction in the amount paid. The rapporteur, Congressman Arthur Lira (PP-AL), also included an extension of the partial exemption range for those earning up to R$7,350 per month, broadening the measure's scope.