Tax breaks benefit the wealthiest.

Tax Waivers These are a central issue in the debate on tax justice in Brazil, especially in 2026, when the government will stop collecting R$ 618.4 billion that mainly benefits the wealthiest.

This article will explore the impact of these tax waivers, comparing them to the Bolsa Família budget and analyzing the main tax benefits that lack a social counterpart, such as the exemption of profits and dividends and the non-establishment of a tax on large fortunes.

By delving deeper into this discussion, we seek to highlight the need for a fairer and more equitable tax system in the country.

Tax Waivers in 2026: Scope and Social Impact

In 2026, the Brazilian government will stop collecting R$ 618.4 billion in tax breaks, an amount that is almost four times the budget allocated to Bolsa Família, which is R$ 158 billion.

These waivers include exemptions, subsidies, and tax benefits, often without significant social return.

An example of a tax privilege is the exemption on profits and dividends, which represents a loss of R$ 146.1 billion.

Furthermore, the absence of a tax on large fortunes prevents the collection of... R$ 100.5 billion.

These tax mechanisms primarily benefit the wealthiest, perpetuating substantial economic inequalities in the country.

The failure to implement more equitable tax policies raises debates about tax justice.

The waivers also include special installment payment programs, resulting in a loss of R$ 43.9 billion, and the tax exemption for basic food items, estimated at R$ 30.1 billion...without necessarily benefiting those who need it most. It is evident that the absence of social return in these benefits reinforces the urgent need to reformulate tax policies so that they contribute to greater social equity.

For additional information, you can check the material published by CNN Brazil which discusses the impact of this on the economy.

Tax Privileges That Will Concentrate Income

In 2026, Brazil will face significant challenges in its tax structure, with privileges that intensify income concentration and widen fiscal inequality.

The exemption of profits and dividends, which represents a loss of R$ 146.1 billion, and the absence of the Wealth Tax, whose revenue could total R$ 100.5 billion, are two of the main critical factors in this scenario.

Analyzing these tax privileges is essential for understanding the dynamics of tax justice in the country.

Tax exemption on profits and dividends.

A exemption from profits and dividends It has a significant impact on the progressivity of the Brazilian tax system.

Despite recent changes in legislation to tax a portion of these earnings, the exemption still represents a substantial loss of revenue, estimated at... R$ 146.1 billion in 2026. This fiscal policy perpetuates inequalities and undermines tax fairness.

The consequences of maintaining this exemption include:

• Income concentration among the wealthiest, weakening the redistribution of wealth;
• Reduced capacity of the State to finance essential public services;
• Discouragement of social justice, perpetuating a regressive system

.

According to experts, not applying a tax to these incomes makes it difficult to build a fairer and more efficient tax system.

For more information about the changes in legislation, please visit the website of Grant Thornton.

Absence of a Wealth Tax

The absence of a wealth tax in Brazil has significant effects on... extreme inequality By concentrating resources in the hands of the wealthiest, it limits fiscal justice.

The estimated revenue from this tax would be... R$ 100.5 billion, becoming essential in reducing economic disparities.

This sum could be reinvested in social programs and infrastructure, benefiting the whole of society.

However, the implementation of the tax faces obstacles:

• Resistance from the economic elites who control vast wealth.
• Complexity in defining what constitutes a "great fortune" and how to properly assess it, as discussed in sevilha.com.br.
• Conflicting political interests that influence public policies.

These factors maintain the status quo, disproportionately favoring the wealthiest.

Secondary Programs that Erode Federal Revenue

Tax programs that include special debt installment plans and tax exemptions for basic food items represent a an important source of revenue loss for the Brazilian government.

By 2026, these initiatives are estimated to generate significant fiscal erosion, negatively impacting the revenue needed to fund essential social programs.

These programs are frequently criticized for not providing sufficient social benefits and for disproportionately benefiting the wealthiest sectors of the population.

Despite the apparent benefits for consumers, the tax exemption for basic food items This raises questions, since it also favors those with greater contributory capacity.

This happens because everyone, regardless of income level, benefits from tax exemptions, which often leads to increased consumption rather than tax fairness.

Special installment plans for tax debts allow large companies to renegotiate their debts under more favorable conditions, which can be seen as an incentive to default.

The central argument of the criticism is that unequal distribution of tax benefits, favoring those who least need state fiscal support, perpetuating inequalities and decreasing transparency in the use of public resources for social development purposes.

Tax Justice: A Necessary Debate

A tax justice In Brazil, this becomes a pressing issue, especially when we consider the substantial tax breaks the country grants annually.

In 2026, the government will forgo a staggering R$ 618.4 billion in tax breaks that predominantly benefit the wealthiest segment of the population.

This amount is almost four times the budget allocated to Bolsa Família, widening the existing disparity.

The exemption of profits and dividends, resulting in a loss of R$ 146.1 billion, and the non-implementation of the Wealth Tax, with the potential to raise R$ 100.5 billion, are examples of how these measures lack... social counterpart significant.

According to the BBCThis situation illustrates a profound imbalance in the tax structure, which demands urgent review.

Furthermore, the special payment plans and the tax exemption for basic food items, responsible for other substantial losses, prove to be measures that benefit a few at the expense of funding more inclusive public policies.

Like this, rethink this structure This becomes fundamental for us to move towards much-needed social justice in Brazil.

The question is: how long will we allow the tax system to operate like a "reverse Robin Hood"?

The discussion about Tax Waivers And its relationship with tax justice is crucial for Brazil's future. It is essential to rethink these exemptions to ensure a tax system that benefits the entire population, not just a privileged minority.