Photo: screengrab from the official website of Brasil 247

 
By Brasil 247 - Brazil's Chamber of Deputies voted unanimously on Wednesday (October 1) to approve President Luiz Inácio Lula da Silva's proposal to exempt more than 10 million workers earning up to 5,000 reais per month (about $1,000) from paying income tax. The measure, reported by Agência Gov, passed with 493 votes in favor and none against. The bill now moves to the Senate for consideration.

In addition to expanding the exemption threshold, the proposal includes tax reductions for another 5 million workers earning between 5,000 and 7,350 reais per month, covering a total of 15 million Brazilians.

Lula hails victory for tax justice

In a statement posted on social media, President Lula celebrated the approval:

"A victory in favor of tax justice and the fight against inequality in Brazil, benefiting 15 million Brazilian workers."

He also emphasized the broad support that made the measure possible:

"This is a victory shared by the government, lawmakers and social movements. I am certain the proposal will also enjoy wide support in the Senate."

Lula recalled that since 2023, his administration had already expanded the tax exemption to cover those earning up to two minimum wages, lifting 10 million people from the income tax rolls.

Finance minister: "A historic day"

Finance Minister Fernando Haddad called the decision a turning point in Brazil's effort to address inequality:

"A historic day. We are beginning to confront our main wound: our unacceptable inequality. There is no development with this level of inequality. There is no justice. We have started, and together we will finish this work."

Toward a fairer future

Institutional Relations Minister Gleisi Hoffmann, who was present in the chamber during the vote, praised the outcome on social media:

"A historic step toward tax and social justice. A proposal from President Lula's government that puts Brazil on the path to a fairer and more equal future."

Congress united: unanimous approval

Chamber of Deputies Speaker Hugo Motta hailed the consensus around the proposal, saying it would advance social justice and put more money in workers' pockets.

House rapporteur Arthur Lira underscored the symbolic power of a unanimous vote:

"It was an honor to report on the bill that will benefit more than 15 million Brazilians."

Offsetting with tax on the super-rich

The measure, first introduced by the government in March, includes a revenue offset: a new levy of up to 10% on so-called super-rich Brazilians—an estimated 140,000 individuals with taxable income above 50,000 reais per month (roughly $10,000), or 600,000 reais annually.

If approved by the Senate and signed into law by President Lula by the end of the year, the new tax regime will take effect in 2026.

(Reported by Brasil 247 on October 2, 2025)