Lula will issue a decree by May 1st that raises the income tax exemption threshold to R$ 2.640.
The measure will especially benefit those with lower purchasing power, who will not have any amount withheld at source, assured the Minister of Labor, Luiz Marinho.
247 - The Brazilian government plans to raise the income tax threshold for those earning up to R$ 2.640 per month starting in May, according to the Minister of Labor and Employment, Luiz Marinho. According to the minister, the measure will especially benefit those with lower incomes, who will not have any income withheld at source.
The adjustment to the tax table will have an impact of R$ 3,2 billion on federal accounts this year and will result in a revenue loss of approximately R$ 6 billion next year.
On Thursday (27), the minister had already announced that President Luiz Inácio Lula da Silva will sign a provisional measure raising the value of the minimum wage to R$ 1,320 as of May 1st.
In February, when the president declared he would make the changes in May, the Internal Revenue Service explained that the income tax exemption threshold would be adjusted from R$ 1.903,98 to R$ 2.112.
The provisional measure to be issued will further expand the guarantee range, providing more financial relief for those with lower incomes. The tax waiver will be financed by other revenue sources, such as the participation of large fortunes and the elimination of unnecessary tax exemptions.
In addition, a simplified monthly deduction of R$ 528 will be created, which will be automatically applied to the taxpayer's payment.