🎰 Lula goes all in

The government launches its income tax proposal. Central Bank will announce another interest rate hike. Eduardo Bolsonaro goes into voluntary exile.

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Gustavo Ribeiro & Letícia Arcoverde
March 19, 2025 • Reading Time: 2 minutes

Good morning! For the first time in 34 years, there is currently no member of the Bolsonaro family serving in Brazil’s House, after Eduardo Bolsonaro announced his plans for taking unpaid leave in the US — more on that below. 

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Government proposes massive income tax reform

Lula on Tuesday hosted congressional leaders at the presidential palace to present his proposal to reform Brazil’s income tax system. Photo: Ricardo Stuckert/PR

Lula on Tuesday hosted congressional leaders at the presidential palace to present his proposal to reform Brazil’s income tax system. Photo: Ricardo Stuckert/PR

The Luiz Inácio Lula da Silva administration on Tuesday introduced a bill that would raise the income tax exemption threshold to those earning BRL 5,000 (USD 881) per month, a move aimed at providing relief for lower-income citizens.

Driving the news. The proposal seeks to offset the expanded exemption by implementing a minimum tax on the wealthy and reinstating a tax on dividends, which Brazil has not imposed since the 1990s. The bill now heads to Congress for debate, with the government aiming for implementation by 2026 … just in time for the presidential election.

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