The government will send, combined with the mandatory spending cut package, the proposal to exempt those earning up to R$5,000 per month from Income Tax, Finance Minister Fernando Haddad said in a speech this evening. He clarified that the measure will not have an impact on public accounts because it will be funded by extra taxation on those who earn more than R$50,000 per month.
Brasília (DF) 11/27/2024 – Haddad announces income tax exemption for those earning up to R$5,000 – Frame Ministry of Finance
“It’s a fair Brazil, with less taxes and more money in your pocket to invest in your small business, boost commerce in your neighborhood and help your city grow. The new measure will not have a fiscal impact, that is, it will not increase government spending. Because those who have an income of more than R$50,000 per month will pay a little more. All without excess and respecting established international standards”, said the minister in a statement on national radio and television.
According to Haddad, the measure is part of the second stage of the tax reform, which provides for the reform of Income Tax. In his speech, the minister recalled the consumption tax reform, enacted last year and being regulated by Congress, which will bring other benefits to the low and middle classes.
“This measure, combined with the historic Tax Reform, will result in a large part of the Brazilian people paying neither Income Tax nor taxes on basic food products, including meat. Correcting a large part of the unacceptable tax injustice, which deepened social inequality in our country”, added the minister.
