President Luiz Inácio Lula da Silva addressed the nation on radio and TV on November 30, defending the income tax exemption for salaries up to R$ 5,000 monthly. He criticized Brazilian elite privileges and noted the measure will inject R$ 28 billion into the economy in 2026. Compensation will come from taxing super-rich individuals, Lula said.
On the evening of November 30, 2025, around 8:30 p.m., President Luiz Inácio Lula da Silva used the national radio and television chain for a six-minute address. The speech focused on defending the new income tax (IR) exemption law, approved unanimously by the Chamber of Deputies in October and the Senate in November, and sanctioned on November 26. The measure takes effect on January 1, 2026, fully exempting salaries up to R$ 5,000 and reducing tax for incomes between R$ 5,000 and R$ 7,350 monthly.
Lula compared the benefit to a '14th salary,' stating that, per Receita Federal calculations, it will inject R$ 28 billion into the economy in 2026. 'With zero income tax, a person earning R$ 4,800 can save R$ 4,000 in a year. It's almost a 14th salary,' the president said. He gave examples of extra money uses, like paying debts, traveling, or buying a larger TV to watch the 2026 World Cup, boosting consumption, commerce, industry, and jobs.
The president stressed that fiscal compensation will not affect health or education but will come from taxing super-rich individuals — 0.1% of the population, about 140,000 people with income over R$ 1 million annually, who will pay up to 10% IR. 'We're talking about people who earn 10, 20, 100 times more than 99% of Brazilians, and who will contribute 10% income tax to relieve working families,' Lula declared.
He sharply criticized the 'elite privileges' accumulated over 500 years of Brazilian history, calling it 'shameful' that the elite pays an average 2.5% IR, versus 27.5% for workers. 'Those who live in mansions, have money abroad, collect imported cars, private jets, and jet-skis pay ten times less than a teacher, a police officer, or a nurse,' he stated. Lula listed achievements like Brazil's return to the top 10 world economies, exit from the Hunger Map, and low inflation and unemployment, but recalled persistent inequality, with the richest 1% holding 63% of wealth.
The measure, a campaign promise, is seen as a first step against tax injustice and a bet for the 2026 elections. About 15 million Brazilians will stop paying IR, with a R$ 31.2 billion cost offset by super-rich taxation.
