Hugo Motta reaffirms the Chamber's commitment to income tax exemption for those earning up to R$5,000

The Speaker of the Chamber of Deputies, Hugo Motta (Republicans-PB), stated on Monday the 8th that expanding the income tax exemption is a priority for the Lower House. He made the statement in a post on X.

Motta emphasized the position of the Chamber of Deputies' president in a conversation with the Minister of the Secretariat for Institutional Relations, Gleisi Hoffmann (Workers' Party). The congressman emphasized the Chamber's commitment to vote on Bill 1087/2025, reported by Congressman Arthur Lira (PP-AL), which provides for an income tax exemption for those earning up to R$5,000 per month and a gradual reduction for those earning between R$5,000 and R$7,350.

According to Motta, there is an understanding that the measure is important, reinforcing the intention to expedite the bill's progress. The proposal has already been approved for urgent status , allowing it to be voted on directly in the plenary.

The bill also establishes higher rates for those earning more than R$600,000 per year, reaching 10% for income exceeding R$1.2 million per year, in addition to creating a 10% withholding tax on profits and dividends above R$50,000 per month paid by the same company.

The government estimates that these measures will raise R$34 billion per year, enough to cover the estimated R$25.8 billion loss from the exemption and discounts.