Lula's Tax Overhaul: A New Dawn for Brazil's Economy

Brazil's President Lula introduced a significant income tax reform to boost the economy, promising an injection of 28 billion reais. The reform raises the tax exemption threshold, aims to reduce inequality, and is a strategic move ahead of the upcoming presidential race.

In a strategic move ahead of the presidential election, Brazilian President Luiz Inacio Lula da Silva announced a sweeping income tax reform, slated to inject 28 billion reais into the economy by next year.

The reform, a centerpiece of Lula's leftist economic agenda, raises the monthly income tax exemption threshold from 3,036 to 5,000 reais, significantly reducing tax burdens for workers earning up to 7,350 reais monthly.

Lula emphasized the reform's potential to address Brazil's deep-rooted inequality. "This income tax relief means more purchasing power and increased consumption," he stated in a televised address, asserting it as a transformative step for the nation's trade, industry, and services sectors.

(With inputs from agencies.)