BRASILIA (Reuters) -A millionaires tax is on the table under a planned income tax reform in Brazil, but it is only one of multiple scenarios being evaluated by the government, 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.
($1 = 5.5819 reais)