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November 6, 2025
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Exemption from IR is a victory for workers, say trade unions

Exemption from IR is a victory for workers, say trade unions

The Central Única dos Trabalhadores (CUT) and Força Sindical classify the advancement of Income Tax exemption for those earning up to R$5,000, in the Chamber and the Senate, as a historic achievement and a victory resulting from the struggle of the union movement and workers. The approval of the exemption has been the target of a defense campaign by several trade unions. The text with the matter goes to President Lula for sanction.Exemption from IR is a victory for workers, say trade unions

“It is another great and historic victory for the trade union movement for workers, which once again demonstrates our relevance to Brazilian society and the country’s development, towards tax and social justice. The struggle makes the law!”, said the president of Força Sindical, Miguel Torres, in a statement, commenting on the approval in the Senate.

The CUT highlighted that the exemption will benefit more than 20 million Brazilians and defended the taxation of the richest part of the population.

“Taxing the richest is necessary to compensate for the annual R$25.84 billion that, according to the Ministry of Finance, will no longer be collected with the expansion of the exemption range”, the entity disclosed in a note.

Upon approval by the Chamber, the national president of the CUT, Sérgio Nobre, stated that the exemption is a historic victory for the working class.

“We have been campaigning for many years under the banner of tax justice, denouncing that the rich practically do not pay taxes, while those who really pay are the working class,” he said at the time.

According to Força Sindical, the government’s proposal was forwarded to the National Congress, but was only approved after popular mobilization.

“Several times, union leaders from Força and other centers debated and talked with political leaders demanding the approval of this measure, which will only bring benefits to society”, says a note from the entity.

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