Overview

• Congress approved an income tax overhaul that exempts monthly wages up to R$5,000 and targets very high earners and dividends to fund the change.
• For a worker earning R$4,500, eliminating roughly R$300 in monthly income tax would amount to about R$3,600 a year.
• Central Bank figures cited for Ceará indicate one of the Northeast’s highest shares of income committed to debt, suggesting much of the gain may go to repayments.
• Local commentary warns that tax relief is often offset by higher charges or prices such as vehicle taxes, utility tariffs, and fuel.
• A separate analysis contends only about 8% of Brazilians earn above R$5,000 and would carry a larger tax burden, questioning the reform’s fairness and effectiveness.