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Chamber Votes Exemption from Income Tax up to R$ 5 Thousand and Reduction of Rates for Those Earning up to R$ 7,350, Ensuring Direct Relief for the Middle Class.
Income Tax Exemption Project to Be Voted on in the Chamber
The Chamber of Deputies will vote next week on a project that could transform the lives of millions of workers. The proposal expands the exemption from Income Tax (IR) for those earning up to R$ 5 thousand monthly and additionally partially reduces the rate for earnings of up to R$ 7,350.
The President of the Chamber, Hugo Motta (Republicanos-PB), announced the vote this Tuesday (23) and confirmed that the topic will go to the floor on October 1st. The rapporteur of the text, Deputy Arthur Lira (PP-AL), will lead the analysis of the matter.
What’s at Stake for Workers
The approval of the project will bring an invaluable benefit to the middle class. Those earning up to R$ 5 thousand will no longer pay income tax, while those earning up to R$ 7,350 will see a partial reduction in the rate.
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According to official estimates, the measure will generate a fiscal impact of approximately R$ 26 billion. To offset this amount, the government plans to tax profits and dividends of high-income taxpayers at a rate of up to 10%.
Behind the Decision: Chamber and Senate in Dispute
The progress of the project had been gaining momentum since August, when the plenary approved the urgency regime. This decision allowed the text to be taken directly to the floor, without needing to return to committees.
Even so, the delay in scheduling the vote opened space for Senator Renan Calheiros (MDB-AL) to present a similar proposal in the Senate. However, Arthur Lira made it clear:
“The text presented to the leaders is the same approved by the special committee. We seek neutrality and tax justice.”
Moreover, Lira emphasized that there is no chance of the Chamber considering alternatives from the Senate.
Government Bets on the Benefit as a Priority
The Lula administration considers the measure one of the main bets of its tax relief policy. The idea is to reduce the tax burden on the middle class, increasing purchasing power and stimulating domestic consumption.
The President of the Chamber, Hugo Motta, highlighted:
“We will move forward with balance and dialogue, working on important issues for Brazil.”
What Changes for the Average Citizen
If approved, the project will immediately ease the financial burden on millions of Brazilians. Workers who currently allocate a large portion of their income to taxes will be able to keep that money in their household budget.
The impact operates on two fronts: it directly benefits citizens and strengthens the economy, as more disposable income boosts consumption.
Conclusion: A Decisive Step for the Middle Class’s Wallet
The vote next week will be decisive. If the Chamber approves the exemption from income tax up to R$ 5 thousand, millions of families will gain an invaluable benefit in their budgets, while the government balances its accounts by taxing the wealthiest.
In the end, society expects something direct: to pay less tax, achieve more tax justice, and ensure a cheaper future for those who sustain the economy of the country.
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