Haddad Apela: Mobilização Popular por Reforma Tributária

Ministro da Fazenda Advocates for Income Tax Reform to Benefit Lower-Income Brazilians

In an announcement made on Monday in Cajamar, São Paulo, Finance Minister Fernando Haddad urged Brazilian workers to rally for the passage of the proposed income tax reform by engaging with their elected officials. Speaking at a logistics investment event, Haddad detailed that the reform, if passed in its original form, could effectively grant lower-wage earners an additional "14th salary."

Under the current tax structure, any Brazilian earning more than two minimum wages is subject to income tax deducted at source. The new proposal, however, seeks a pivotal change wherein individuals earning up to R$5,000 will be exempt from income tax. Those earning between R$5,000 and R$7,000 would see their tax obligations reduce significantly. "An informative discussion with your representatives in Congress is crucial for the approval of this bill," Haddad emphasized.

The proposed reform, according to Haddad, would establish a gradual income tax rate for annual incomes starting from R$600,000, with a cap of 10% for those earning R$1.2 million annually. "We’ve crafted a compensatory mechanism whereby the wealthy, specifically those earning above R$1.2 million—constituting 141,000 Brazilians—not currently taxed at this level, would be taxed, thereby benefitting approximately 15 million lower income earners," Haddad explained.

New Payroll Loan Options for Private Sector Workers

Further enhancing financial relief options, Haddad highlighted a new payroll-deductible credit line intended for private sector employees. This initiative promises reduced interest rates from 6% to less than 3% per month, courtesy of public banks currently extending loans at 2.5%. "With the inclusion of private banks, the competition is expected to push these rates down further," stated Haddad. This shift enables workers to replace higher interest debts with more manageable financial commitments payable directly from their salary.

President Luiz Inácio Lula da Silva, who was also present at the event, commented on the broader economic advantage of this measure, envisaging an increased circulation of money contributing positively to both the retail market and employment rates across various sectors.

Mercado Livre Bolsters Investment and Job Creation

In an economic boost, Fernando Yunes, the executive director of Mercado Livre in Brazil, announced a landmark investment of R$34 billion scheduled for 2025, positioning it as the largest in the company’s history within Brazil—their primary consumer market. Additionally, the ecommerce giant plans to expand its workforce by recruiting 14,000 employees, bringing the total to 50,000. "In the past year alone, Mercado Livre contributed R$5 billion in taxes, a substantial increase from R$369 million in 2018," Yunes reported.

Additional Perspectives on Brazil’s Economic Landscape

Addressing the comprehensive economic conditions, the Minister of Entrepreneurship, Microenterprise, and Small Business, Márcio França, along with the Minister of Labor and Employment, Luiz Marinho, outlined the multifaceted strategies contributing to Brazil’s economic recovery and the pivotal roles of retail and industrial sectors.

Amidst regional economic implications and persisting global challenges, President Lula assured that Brazil’s economic resilience is fortified by international reserves, capable of mitigating any prospective economic crises.

This thoroughly planned surge in economic activities, tax reforms, and enhanced financial instruments underscores a concerted governmental effort to catalyze consumer spending and job creation, fostering a robust economy geared towards inclusive growth.

Elaine Patricia Cruz cooperated in reporting.

Haddad pede que eleitores se mobilizem por reforma do Imposto de Renda

Agência Brasil

Economia