Proposal that exempts those who earn up to R $ 5,000 per month depends on a mechanism to compensate for tax waiver; Government wants to tax super rich
The advance in the National Congress of, without proper compensation for the taxation of the richest, is seen as a maneuver to force the president’s government (PT) to cut spending or bear the burden of an unpopular veto.
The analysis is from the president of the (IRS), the president of the IRS), give real. To the Poder360He said the legislature seeks exits that do not touch the super rich.
During the Seminar “Tax Justice: The Paths for Social Development Financing in Latin America and the Caribbean”, held on Tuesday (16.Set.2025), in Brazil 21, give the alternatives that have been ventilated by congressmen to compensate for the loss of revenue with the expansion of IR exemption.
According to him, Congress tries to avoid taxation of the top of the pyramid, a measure defended by the government and by tax justice experts. “They want to compensate for the taxation of digital platforms or the increase in the social contribution of net income of banks”these.
For the trade union leader, these proposals divert the focus of the main debate: the need to make large heritage holders and income contribute more fairly to the state’s financing.
“Some congressmen want to embarrass President Lula, with pressure to veto the project [que é a principal promessa de campanha do petista] or to approve insufficient compensation that obliges cutting spending ”he declared.
The legislative offensive takes place at a delicate time for the economic team, which seeks to meet the goals of the tax framework. Non -compensation for the tax renunciation produced by the exemption from IR would create a break in public accounts, forcing the government to make cuts in essential areas or to comply with tax legislation, which could bring economic and political instability.
URGENCY
The PL 1087 of 2025 gained emergency regime in the House of Representatives in August. With this, it can be voted directly in the plenary, without the need to go through the thematic committees. This is the project (PDF – 190 kb).
Although the measure is popular among workers, the lack of a corresponding source of revenue is the nerve point of the issue. “However, there is pressure against tax the richest, but there is no popular pressure to approve the exemption.”said give real.
The federal government argues that IR exemption should be funded by the taxation of exclusive and offshore funds, as well as other measures aimed at the super rich. The agenda faces strong resistance in Congress, especially the benches linked to the financial market and to large entrepreneurs.
The strategy of part of the legislature, by proposing the taxation of digital platforms or the increased CLSS of banks, is seen as a way to create a “Smoke Curtain”. “Although they may generate some revenue, these measures are considered insufficient to cover the total impact of the exemption and maintain the tax structure that privileges the richest,” said the president of Sindifisco.
The decision will fall on President Lula, who will be faced with the dilemma of sanctioning a popular but fiscal irresponsible measure without proper counterpart, or veto the project, risking being seen as opposed to tax relief for the working middle class.
Understand the bill 1087 of 2025:
- What proposes the PL – The bill, authored by deputies of the governing base and the opposition, aims to exempt income tax payment workers who receive a monthly salary of up to R $ 5,000. Currently, the formal exemption goes up to R $ 2,259.20, but with a simplified discount, in practice, who earns up to R $ 2,824 (two minimum wages) does not pay the tax;
- Why the urgency? – In August 2025, the House of Representatives approved the emergency regime for the project. This means that the proposal can be voted directly in the plenary, which may occur this week;
- impasse of compensation – The Fiscal Responsibility Law (LRF) requires that any proposal that creates revenue resignation, such as expanding the exemption of IR, must present a source of compensation to avoid imbalance in public accounts. The Federal Government argues that this compensation comes from the taxation of great fortunes and income, aligned with the Tax Agenda;
- The Congress Strategy: Part of Congress leaders, however, resists taxing the richest and proposes alternatives, such as increasing tax on digital platforms or increasing bank CSLL.
