Brazilian President Luiz Inácio Lula da Silva has been engaged in ongoing discussions with key government figures, including ministers, the President of the Chamber of Deputies Hugo Motta, and congressmen, to negotiate a new fiscal package involving tax increases. These meetings aim to address tensions and dissatisfaction within Congress regarding the proposed fiscal measures. Amid these negotiations, a special commission in the Chamber of Deputies has been reviewing a legislative proposal (PL 1087/2025) concerning changes to the income tax (IR). The proposal includes granting full income tax exemption for individuals earning up to R$5,000 per month and partial exemption up to R$7,350. The report was presented by Deputy Arthur Lira, who is also the commission's rapporteur. Lira maintained a minimum tax rate of 10% for high-income earners while expanding the exemption range to benefit approximately 15.5 million people. The commission scheduled a vote on the proposal for July 16, 2025. The fiscal reform is considered one of the main initiatives of Lula's government for 2025. The discussions have involved some criticism and debate, with Lira acknowledging potential contentious reactions in the plenary. Finance Minister Fernando Haddad has also been involved in the process, observing the presentation of the report. The proposed changes aim to adjust the income tax framework and address fiscal challenges amid political negotiations.