Brazil’s Finance Minister Fernando Haddad projects that increasing the income tax exemption could have a fiscal impact of 27 billion reais ($4.75 billion) annually, but he assures that it will be offset by compensatory measures.

Finance Minister Fernando Haddad of Brazil announced on Monday that he anticipates the government’s proposal to increase the income tax exemption will significantly affect public finances, estimating a fiscal impact of approximately 27 billion reais, equivalent to $4.75 billion, annually. He has previously asserted that this impact would be entirely offset by compensatory measures put in place by the government.

In summary, Minister Haddad’s predictions regarding the proposed tax exemption suggest a notable fiscal effect on Brazil’s economy. However, he emphasizes that the government plans to implement compensatory measures to balance this financial change, ensuring the overall stability of public accounts.

Original Source: www.marketscreener.com