Senate should vote this Tuesday on expanding IR exemption for those earning up to R$5,000

The Federal Senate is expected to vote this Tuesday (4) on the bill that expands the Income Tax (IR) exemption range for those who receive up to R$5,000 per month.

The text, reported by Renan Calheiros (MDB-AL), will be analyzed first by the Economic Affairs Committee (CAE) and then by the House plenary, with approval expected in both stages on the same day.

The proposal is treated as a political priority by the federal government, which considers the measure one of President Luiz Inácio Lula da Silva’s (PT) main commitments to the electorate.

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Renan has coordinated last-minute adjustments with the Ministry of Finance to ensure fiscal balance and ensure that the new exemption range does not generate revenue losses. According to Senate interlocutors, the expectation is for a symbolic vote in the CAE, followed by immediate approval in plenary.

The project increases the exemption limit from the current R$3,036 (equivalent to two minimum wages) to R$5,000, maintaining the policy of correcting the IR table as an instrument for income redistribution.

The government intends to sanction the new rule later this year, so that it comes into force in the declaration of 2026, the election year.

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