Luis Inacio Lula da Silva: It was approved by the Chamber of Deputies and the Senate unanimously and will now take effect in January 2026. If you earn up to R$5,000 per month, December will be the last month you have income tax deducted from your paycheck. And that same law reduces the tax for those who receive between R$5,000 and R$7,350, who will now pay less than they used to.
Luis Inacio Lula da Silva: With zero income tax, a person with a salary of R$4,800 can save R$4,000 in one year.
That's almost a tenth of the salary. And most importantly, the offset will not come from cuts to education or health.
Luis Inacio Lula da Silva: but from taxing the super-rich, who earn more than one million a year and today pay nothing or almost nothing in taxes.
Luis Inacio Lula da Silva: We are talking about 0.1% of the population, people who earn 10, 20, 100 times more than 99% of Brazilians and who will contribute 10% of the income tax to provide relief to the families who work, struggle and drive this country.