US EditionBrazil’s Lula Sanctions an Increase in Tax Exemptions for Low-Income People
The income tax exemption doubles to 5,000 reais monthly, benefiting 15 million Brazilians while a minimum tax targets 140,000 wealthy to balance revenue, officials said.
- On Wednesday, Brazilian President Luiz Inácio Lula da Silva sanctioned a bill that exempts people earning up to 5,000 reais monthly from income tax in Brazil.
- Both Lula and Jair Bolsonaro pledged during the 2022 election to double the income tax exemption, and the adoption is a political victory for Lula, who will run for a fourth term next year.
- The presidential palace said about 15 million Brazilians will benefit next year, with 10 million no longer paying income tax and 5 million receiving reductions up to 7,350 reais .
- To offset revenue loss, Brazil's Finance Ministry targets 140,000 wealthy individuals earning over 600,000 reais and ramps the minimum effective tax from zero to 10% for incomes over 1,200,000 reais.
- Amid shifting trade ties, U.S. tariffs on Brazilian imports helped Lula recover popularity, but the subsequent revocation of many tariffs altered Brazil’s economic backdrop.
19 Articles
19 Articles
Brazil’s Lula sanctions an increase in tax exemptions for low-income people
Brazilian President Luiz Inácio Lula da Silva has sanctioned a bill that exempts people earning up to 5,000 reais a month from income taxes. This move more than doubles the current exemption and fulfills a key campaign promise. The measure,…
Brazil’s Lula sanctions an increase in tax exemptions for low-income people
Brazilian President Luiz Inácio Lula da Silva has sanctioned a bill that exempts people earning up to 5,000 reais a month from income taxes. This move more than doubles the current exemption and fulfills a key campaign promise. The measure,…
It Is Official: Low-And Lower-Middle-Income Brazilians Are Taken Off The Tax Roll
Brazil has approved a tax change that looks technical but is huge for workers. From 2026, anyone earning up to R$5,000 a month will pay no income tax. Soon it will reach people who, in Brazilian terms, sit in the lower middle class. To see what this means, start with the minimum wage. From January […]
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