The special secretary of the Federal Revenue Robson Barreirinhas said, this Tuesday (21), that the income tax reform is a rescue in favor of the Brazilian population. 
He participated in a hearing at the Senate’s Economic Affairs Committee (CAE) on PL 1,087/2025, which deals with the exemption from income tax for those earning up to R$5,000.
The text was approved unanimously in the Chamber of Deputies on October 1st and is now analyzed in the Senate.
“It is important to remember that the Income Tax table remained uncorrected from 2015 to 2022, a gap of almost 60% of the table. If the income tax table were updated as it was in the period before 2015, we would not be having this discussion of the reform”, said the secretary.
According to Barreirinhas, the government is currently making a strong, more balanced correction for the poorest people, with revenue from those who earn more.
“There is nothing to talk about losses for states and municipalities. We have to talk about a rebalancing of taxation in favor of the Brazilian population. The Union, states and municipalities are partners in income tax”, he stated.
Currently, those who earn up to R$3,036 are exempt from tax. The project determines that, in 2026, people who earn up to R$5,000 will have a monthly discount of up to R$312.89, so that the tax due is zero. For those who earn from R$5,000.01 to R$7,350.00, the discount will be R$978.62.
According to the government, with the approval of the proposal, more than 26.6 million taxpayers will benefit from the exemption in 2026.
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To compensate for the exemption, whose cost is estimated to be R$ 25.8 billion to the public coffers, the The project provides for the taxation of people with income above R$600,000 per year, with a progressive rate of up to 10%.
The maximum rate will apply to those who receive from R$1.2 million annually. Furthermore, it will not be applied to those who already pay the maximum income tax rate, which is 27.5%.
André Horta Melo, institutional director of the National Committee of State and Federal District Finance Secretaries (Comsefaz), also highlighted the importance of taxing dividends.
“This Brazilian exception ends this project in a very commendable way, because it is an unequal country, and it is precisely in the taxation of dividends that it is easier to exercise the reduction of inequalities and this is missing in our tax system. This return to dividend taxation is central to this project”, stated Melo.
