The House of Representatives recently began the discussion of the bill (PL) 1.087, 2025, which Predicts Income Tax Exemption (IR) for individuals with monthly income up to R $ 5,000 and discount for those who earn up to R $ 7,350 monthly. The forecast is that the project will be voted on the night of Wednesday (1st).
The proposal was sent by the federal government. If approved in the House, The bill will still have to be voted in the Senate, before being sanctioned by President Luiz Inacio Lula da Silva to come into force.
IR reduction was a Lula campaign promise in 2022. Submitted to the House in March, the text has already been approved in a special committee that analyzed the text.
Currently, people who earn up to $ 3,036 are currently exempt. The project determines that in 2026, those who earn up to $ 5,000 will have a monthly discount of up to R $ 312.89, so that the tax due is zero. For those who earn $ 5,000.01 up to $ 7,350, the discount will be $ 978.62.
According to the government, with the approval of the proposal, more than 26.6 million taxpayers will benefit from 2026.
To compensate for the exemption for those who earn up to R $ 5,000, whose cost is estimated R $ 25.8 billion, the project foresees the taxation of people with income above R $ 600 thousand per year, with a progressive rate of up to 10%.
The maximum rate will focus on those who receive annually from R $ 1.2 million. In addition, it will not be applied to those who already pay the maximum IR rate, which is 27.5%.
The rapporteur of the bill, Deputy Arthur Lira (PP-AL), estimates that, with the collection with the taxation of this segment, there will be a leftover of R $ 12.7 billion by 2027. In its opinion, Lira allocated to compensate for the reduction of the tax and services contribution (CBS), instituted by tax reform.
