Rico will pay more and we will fight for exemption of up to R$ 5 thousand, says Lula on income tax

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President Luiz Inácio Lula da Silva (PT) said this Wednesday (18th), in a speech to representatives of trade union centrals, that “the rich will pay more (Income Tax), let’s change the logic, let’s reduce it for the poor and increase for the rich.”

“In this country, those who pay real income tax are those who have a pay stub, because it is deducted from the payment and we cannot not pay it. But the truth is that the poor person who earns R$3,000 reais, proportionally, pays more than someone who earns R$100,000 reais,” he said.

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For the change to take place, however, the president points out that he will need the help of the National Congress and the support of the population.

“It takes a lot of convincing in Congress, organization of society. We don’t win this if there is no mobilization of the Brazilian people to put the poor in the Union’s Budget and put the rich in the Income Tax”, he said.

Exemption for salaries of up to BRL 5 thousand

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The president also said that he intends to “fight” for exemption from the IR for those who earn up to R$ 5 thousand in salary.

“Obviously, tax exemption and tax increase needs a law, we can’t do it in a shout, we have to build this, let’s start carrying out a tax reform. I liked Haddad’s declaration that we are going to carry out the tax reform in the first semester”.

45 days for proposal on minimum wage

During the meeting, Lula signed an order determining that the Ministries of Labor and Social Security, among others, present a proposal within 45 days for a policy to increase the value of the minimum wage.

On the eve, the Minister of Finance, Fernando Haddad, said that the government will define the minimum value for this year based on a negotiation with the centrals, but indicated that the viability of a value above the 1,302 reais already in force will depend on the calculation the number of INSS beneficiaries, since a large portion of social security payments are indexed to the minimum.

/ Published by Ligia Tuon and Gustavo Zanfer

Source: CNN Brasil

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