Brazil tax reform could include millionaires tax, says finance minister
Add details of measures reported as in discussion within the government in paragraphs 4-5, remarks from the minister in paragraphs 1 and 6, background on government measures over taxes in paragraph 7
BRASILIA, Oct 10 (Reuters) -A millionaires tax is one of four scenarios being evaluated by Brazil's government to compensate for proposed tax exemptions for the lowest earners, Finance Minister Fernando Haddad said on Thursday.
President Luiz Inacio Lula da Silva has pledged to send an income tax reform to Congress, including a proposal to extend an income tax exemption to those earning up to 5,000 reais ($895.8) a month. The current upper limit for the exemption is 2,824 reais per month.
Haddad told journalists on Thursday that the reform must be "neutral," meaning measures aimed at increasing government tax revenues would have to compensate the effects of proposed exemptions.
Local newspaper Folha de S. Paulo first reported on Wednesday that the government was mulling the creation of a minimum tax on individual millionaires, which would be set between 12% and 15% of income.
Under the rules being discussed, according to the report , millionaires who currently do not pay the minimum percentage would have to contribute further until they reach the target.
Asked about the report, Haddad said that "it's one of the scenarios" under consideration.
The reform would be the government's latest change on taxes after Congress approved last year a major overhaul on consumption levies, although lawmakers still need to green light bills with regulations needed to implement the measures.
($1 = 5.5819 reais)
Reporting by Victor Borges in Brasilia; Writing by Andre Romani; Editing by Leslie Adler, Brendan O'Boyle and Aurora Ellis
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
