Brazil’s Finance Minister Fernando Haddad has proposed expanding income tax exemptions for lower-income citizens while increasing taxes on higher earners on 27 November 2024.
Alongside these measures, the Finance Minister also outlined plans to reduce public spending in the coming years.
Haddad, who called his reform policies “the biggest income reform in our history,” also proposed raising the tax-free threshold to BRL 5,000 (USD 842) per month from BRL 2,824 while increasing income tax rates on those earning over BRL 50,000 to offset the loss in revenue.
Haddad outlined plans for a spending cut package that is expected to save BRL 70 billion (USD 11.8 billion) over two years.
The tax reforms will become law after formalisation and Congressional approval.
