The income tax exemption project for incomes up to R$ 5 thousand will be sent to Congress
The Minister of Finance, Fernando Haddad, announced that the expansion of the income tax exemption for those earning up to R$ 5 thousand monthly will cost around R$ 27 billion in 2026. This amount represents the government's loss of revenue due to the change, which aims to benefit those earning above two minimum wages.
The bill will be sent to Congress this Tuesday (18) and, if approved, will take effect in 2026. To compensate for this loss of revenue, the government proposed taxing those earning more than R$ 50 thousand per month, with progressive rates that can reach 10% for incomes above R$ 1 million. This taxation will include incomes currently untaxed or with low taxation, such as dividends, interest on equity, and rents.
Additionally, still this year, the government intends to raise the income tax exemption from R$ 2,824 to R$ 3,036, equivalent to two minimum wages. Haddad explained that this adjustment is necessary due to the increase in the minimum wage, which alters the base upon which the correction of the exemption limit will be applied.
The official announcement of the expansion of the exemption range is expected to occur after a meeting with the presidents of the Chamber of Deputies and the Federal Senate. However, there is still no confirmation that the new measure will be announced this Tuesday.
Source: BBC News Brazil
$BNB $SOL
The Minister of Finance, Fernando Haddad, announced that the expansion of the income tax exemption for those earning up to R$ 5 thousand monthly will cost around R$ 27 billion in 2026. This amount represents the government's loss of revenue due to the change, which aims to benefit those earning above two minimum wages.
The bill will be sent to Congress this Tuesday (18) and, if approved, will take effect in 2026. To compensate for this loss of revenue, the government proposed taxing those earning more than R$ 50 thousand per month, with progressive rates that can reach 10% for incomes above R$ 1 million. This taxation will include incomes currently untaxed or with low taxation, such as dividends, interest on equity, and rents.
Additionally, still this year, the government intends to raise the income tax exemption from R$ 2,824 to R$ 3,036, equivalent to two minimum wages. Haddad explained that this adjustment is necessary due to the increase in the minimum wage, which alters the base upon which the correction of the exemption limit will be applied.
The official announcement of the expansion of the exemption range is expected to occur after a meeting with the presidents of the Chamber of Deputies and the Federal Senate. However, there is still no confirmation that the new measure will be announced this Tuesday.
Source: BBC News Brazil
$BNB $SOL
