President refers to the value of the Income Tax exemption range; PT member takes the opportunity to criticize Congress for not taxing fintechs anymore
The president (PT) stated this Friday (October 10, 2025) that Brazilians with an income of up to R$5,000 per month cannot be considered middle class. The statement was made during a ceremony to announce the new housing credit model, in São Paulo.
“Anyone who earns up to R$5,000 cannot be called middle class. If the person pays rent and has a child at school, they can barely eat”said Lula. According to him, it is necessary “create a kind of middle-class society” not country.
Lula cited the value of R$5,000 because the Chamber approved the Income Tax reform on October 1, which exempts those who earn up to this amount and charges a minimum rate for those who earn above R$50,000 per month. The text still needs to be approved by the Senate this year to come into force in 2026.
The salary for Brazilian workers in 2022 was R$2,851, according to data from the work and income module of the last Census, released on Thursday (9.Oct.2025) by IBGE (Brazilian Institute of Geography and Statistics). When talking about social classes, however, it is necessary to take into account the average family income.
According to IBGE data, class C, commonly called “lower middle class”is one with an average family income ranging from R$3,500 to R$8,300. Class B, or “upper middle class”has a family income of R$8,300 to R$26,000. The classification varies, depending on the criteria used, because there are a series of factors that impact the ranges, such as where the families live, for example.
Criticism of Congress
At the event in São Paulo, Lula took the opportunity to criticize the National Congress. He complained about deputies who, according to him, vote against projects that benefit fintechs, but approve measures that reduce revenue. “When I send a project so that fintechs can earn more, they vote against it because that money could be used for us to carry out a little more social inclusion policy”he stated.
On Thursday (Oct 9), the president said he would present a new tax for the sector to compensate for the overthrow of the IOF MP. The day before, the Chamber buried the provisional measure that intended to equate taxes on fintechs to those paid by traditional banks.
New credit model
The event in which Lula made the statements marked the announcement of structural changes in real estate credit. The government presented a new model for using savings that raises the financing ceiling through the SFH (Housing Financial System) from R$1.5 million to R$2.25 million.
The measure focuses on expanding access to housing credit for families with incomes of up to R$12,000. According to the Minister of Cities, Jader Filho (MDB), these families were uncovered, as they do not qualify for Minha Casa Minha Vida nor are they able to pay market interest.
The reform of real estate credit is part of a cycle of transformations in the financial system that began in 2023, according to the Minister of Finance, Fernando Haddad (PT). The calendar foresees gradual implementation in 2026, the year of presidential elections.
How it works
The government calls the program “modernization of savings”. Today, banks are required to allocate 65% of savings resources to housing loans – a fixed rule. Here are some points of the new model:
- Gradual transition: obligation gradually ceases to exist; begins in 2025 and will be completed in January 2027;
- End of obligation: The fixed allocation of 65% of savings to housing credit is no longer valid;
- Credit offer: banks will be able to combine savings resources with money from the financial market (such as LCIs and CRIs); banks that do not capture savings will be able to grant credit under equivalent conditions;
- Extended limit: maximum value of property financed by SFH increases from R$1.5 million to R$2.25 million;
- Interbank deposits: are now used to boost housing credit.
During the transition period, the volume of compulsory deposits at the Central Bank will be reduced from 20% to 15%, and the 5% released will be applied to the new regime. The remaining 15% remains for free operations.
