Lula Government Considers Creating a Minimum Tax for Millionaires in Brazil
The idea is to use the tax to fund the increase in the income tax exemption threshold to $896
Oct.10.2024 1:11PM
Adriana Fernandes
Brasília
The Ministry of Finance is studying the creation of a minimum tax for individuals to ensure effective taxation of millionaire incomes in Brazil.
The debate on the topic is being conducted discreetly within the team of Minister Fernando Haddad as a potential countermeasure to fund the increase of the IRPF (Personal Income Tax) exemption threshold to R$5,000 ($896).
Adjusting the tax table is a campaign promise of President Lula. The current exemption value is two minimum wages (R$2,824). The minimum tax on millionaire individuals would have a rate to be defined between 12% and 15% of income.
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In Brazil, the higher the individual's income, the lower the tendency to pay taxes. This is known as the regressivity of the Brazilian tax system.
https://www1.folha.uol.com.br/internacional/en/business/2024/10/lula-government-considers-creating-a-minimum-tax-for-millionaires-in-brazil.shtml