Lula and the CONTROVERSIAL decision on Income Tax for Brazilians: you need to know

Big news could impact the finances of millions of Brazilians! Find out everything about the decision that has just been made on Income Tax.

Amid an economic scenario where every penny counts, a recent decision by the Lula Government on Income Tax has been a topic of intense discussion and analysis.

With a change that could affect millions, this decision marks a decisive moment in Brazilian fiscal policy! Therefore, the president’s decision is already considered somewhat controversial. To check whether the measure will affect you, just keep reading!

Check out the Government’s controversial decision on Income Tax! Credit: plasticaxe.

What is Income Tax?

Income Tax (IR) is a fee charged by the government on the income of Brazilian citizens and companies.

It is essential for financing essential areas such as health, education and infrastructure. IR is calculated based on the income of the individual or company, where different income ranges are subject to different rates.

Read more: Seniors can guarantee exemption from Income Tax 2024 with these steps!

Lula makes controversial decision on Income Tax

In May last year, the Lula Government implemented a Provisional Measure that changed the Income Tax exemption range.

The exemption, which was previously R$1,903.98, increased to R$2,112. This change means that people with income up to two minimum wages were exempt from paying IR.

What does IR look like after the minimum wage adjustment?

However, with the increase in the minimum wage to R$1,412, the situation changed. Now, those who receive up to two minimum wages (R$2,824) can be taxed again following last year’s law.

In more practical terms, this means that a larger range of the population may be subject to paying IR.

In this complete scenario, Fernando Haddad, the Minister of Finance, announced that the government will carry out a new review of the IR exemption range.

The objective is to adjust the exemption in light of the increase in the minimum wage, ensuring that fiscal policy is fair and equitable for everyone.

Lula makes decision to review the Income Tax table

Last Tuesday, President Lula reiterated the government’s intention to correct the Income Tax table. The task will be carried out by Fernando Haddad. This decision aims to adjust the tax burden more equally between different income groups.

In December last year, the government carried out a tax reform focused on consumption taxes for Brazilians.

Now, with a deadline of 90 days to submit proposals on changes to income taxation, the Lula government seeks to balance taxation, prioritizing social justice.

Read more: Lula HANGS the gavel today (25/01) regarding Income Tax: it’s a party!

The Lula Government’s decision on Income Tax highlights a commitment to fiscal justice and the need to adapt policies to economic changes.

With millions of Brazilians impacted, it is essential that changes are made to protect the most vulnerable, while ensuring sufficient resources for essential public services.

It is worth remembering that, in 2024, you will be able to submit your Income Tax declaration until May 31st. Do not waste time!

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