The Brazilian Government announced this Friday that it would eliminate the income tax paid by more than 13 million registered workers earning up to 2,640 reais, equivalent to US$ 530 per month.
The announcement was made by the Minister of Labor, Luiz Marinho, who emphasized that the measure is part of one of the electoral campaign promises made by President Luiz Inácio Lula da Silva.
The increase in Brazil’s non-taxable minimum income tax had been frozen since 2015 and began to be executed after Lula’s inauguration last January 1.
The measure will be implemented as of May and is part of Lula’s announcements on celebrating International Workers’ Day following Monday.
Currently, the non-taxable minimum is 1,903 reais, the equivalent of 381 dollars.
“We will return to talk about greater exemptions when the economic condition of the budget allows it,” Marinho told journalists at the Planalto Palace, the seat of Government.
The minister indicated that the maximum objective of Lula’s Government is to consider wage earners who earn 5,000 reais, about 1002 dollars at the current exchange rate, as exempt.