Brazil’s government on Tuesday unveiled a long-promised income tax reform aimed at exempting individuals earning up to 5,000 reais (approximately $881) per month from paying income tax.
Finance Minister Fernando Haddad described the bill as "balanced" in fiscal terms and a step toward achieving tax justice.
Under the proposal, the revenue gap created by the tax exemption for low-income earners would be offset by imposing new levies on high earners, as well as on profits and dividends sent abroad. The reform is designed to relieve the tax burden on the country’s lower-income population while ensuring that wealthier individuals and corporations contribute a fair share.
President Luiz Inácio Lula da Silva's government has consistently emphasized the need for reforms that promote social equity and stimulate economic growth. This income tax reform is a central element of the administration’s broader fiscal agenda, aiming to foster a more just tax system while maintaining fiscal balance.
Haddad’s statement comes as part of ongoing efforts to modernize Brazil’s tax structure and reduce income inequality. If implemented, the reform is expected to boost disposable income for millions of low-income Brazilians, potentially stimulating domestic consumption, while also generating additional revenue from the nation’s wealthiest sectors to sustain government spending and public services.
The proposal now moves to the legislative stage, where it will face debate and scrutiny in Congress. Lawmakers and economists will weigh its potential to drive economic growth against concerns about its impact on investment and competitiveness.
Ahead of COP30 in Belem, Brazil is pushing for the creation of new global governance mechanisms to help nations implement their climate commitments under the Paris Agreement, citing an urgent need to accelerate action.
Authorities say they stopped a planned attack on Lady Gaga’s Copacabana concert, which drew over 2 million fans.
Brazil's Supreme Court has ordered the arrest of former President Fernando Collor de Mello after rejecting his appeals against a corruption conviction, with a ruling from 2023 sentencing him to nearly nine years in prison for money laundering and bribery.
Pedro Lucas Fernandes has declined President Luiz Inácio Lula da Silva’s offer to become Minister for Communications—a key post that oversees the country’s telecoms and postal system.
Brazil’s former president Jair Bolsonaro has undergone intestinal surgery after being hospitalized with severe abdominal pain.
Britain's King Charles has called on the world to work toward lasting peace and preventing future wars during a speech marking the end of four days of events celebrating the 80th anniversary of Victory in Europe (VE) Day.
Before becoming Pope Leo XIV, Cardinal Robert Prevost shared rare insights on faith, unity, and modern challenges in a few candid interviews.
A humanitarian ship carrying 20,000 tons of Ukrainian wheat docked in Samsun, Türkiye, on Thursday, marking a major World Food Program initiative to supply crisis-hit regions, including Syria.
North Korea’s leader Kim Jong Un supervised a missile test on Thursday, emphasizing the nation's nuclear combat readiness, according to state media KCNA.
EU foreign ministers will visit Lviv, Ukraine, on May 9 to discuss defense support and endorse plans for a tribunal on war crimes and aggression.
India has fired a series of missiles into Pakistani-controlled territory, in what it has described as “Operation Sindoor”
Discover every major VE Day 80 event in Britain, 5‑8 May 2025—from London’s parade and fly‑past to street parties, concerts and museum exhibitions.
For the first time in history, an American has been chosen to lead the Catholic Church, as Cardinal Robert Prevost is named pope.
Chinese e-commerce platform Temu has announced it will no longer sell goods directly from China to U.S. customers, shifting instead to U.S.-based sellers amid the closure of a long-criticized customs loophole.
Cardinals from 70 nations have gathered in Vatican City to begin the historic conclave to elect the next pope, following the death of Pope Francis 17 days ago. This conclave is the most geographically diverse in Church history, showcasing Francis’ legacy of inclusivity.
Britain's King Charles has called on the world to work toward lasting peace and preventing future wars during a speech marking the end of four days of events celebrating the 80th anniversary of Victory in Europe (VE) Day.
Before becoming Pope Leo XIV, Cardinal Robert Prevost shared rare insights on faith, unity, and modern challenges in a few candid interviews.
A humanitarian ship carrying 20,000 tons of Ukrainian wheat docked in Samsun, Türkiye, on Thursday, marking a major World Food Program initiative to supply crisis-hit regions, including Syria.
North Korea’s leader Kim Jong Un supervised a missile test on Thursday, emphasizing the nation's nuclear combat readiness, according to state media KCNA.
EU foreign ministers will visit Lviv, Ukraine, on May 9 to discuss defense support and endorse plans for a tribunal on war crimes and aggression.
Britain's King Charles has called on the world to work toward lasting peace and preventing future wars during a speech marking the end of four days of events celebrating the 80th anniversary of Victory in Europe (VE) Day.
Before becoming Pope Leo XIV, Cardinal Robert Prevost shared rare insights on faith, unity, and modern challenges in a few candid interviews.
A humanitarian ship carrying 20,000 tons of Ukrainian wheat docked in Samsun, Türkiye, on Thursday, marking a major World Food Program initiative to supply crisis-hit regions, including Syria.
North Korea’s leader Kim Jong Un supervised a missile test on Thursday, emphasizing the nation's nuclear combat readiness, according to state media KCNA.
EU foreign ministers will visit Lviv, Ukraine, on May 9 to discuss defense support and endorse plans for a tribunal on war crimes and aggression.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment