Investidores - Brasileiros
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Bullish
'Taxing the rich may reduce Brazil's competitiveness,' says Henrique Meirelles, head of the Central Bank in the Lula government
Henrique Meirelles, former president of the Central Bank and former Minister of Finance, warns that the Lula government's proposal to tax the super-rich could affect Brazil's competitiveness.
The measure proposes a minimum tax for taxpayers with an annual income starting at R$ 600,000, affecting about 140,000 people. The idea is to create space to exempt from Income Tax those earning up to R$ 5,000 per month.
The proposal, already approved in a special commission of the Chamber, defines that the rate for those earning up to R$ 50,000 per month would be close to zero, gradually rising to 10% for incomes above R$ 100,000 per month.
For Meirelles, generalized tax increases for high-income individuals and companies should be analyzed with caution. According to him, this could harm Brazil's image before investors by reinforcing the perception of a high tax burden — especially among emerging countries.
He states that countries with high tax burdens, such as those in Northern Europe, offer many benefits to citizens but are not leaders in international trade, unlike countries like China, Vietnam, and the USA.
A former presidential candidate for the MDB in 2018, Meirelles told BBC News Brazil that he has not assessed the personal impact of the proposal on his assets, but that this does not influence his opinion.
The income tax reform is an old promise of the Lula government and has been taken to international forums such as the G20 and BRICS. A 2024 study shows that Brazilians with monthly incomes above R$ 37,000 pay, on average, 14% in tax — the same percentage paid by those earning R$ 6,000.
The wealthiest, above that, would pay effective rates below 13%, revealing a regressive tax structure that exacerbates inequality.
Source: BBC News Brazil
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Henrique Meirelles, former president of the Central Bank and former Minister of Finance, warns that the Lula government's proposal to tax the super-rich could affect Brazil's competitiveness.
The measure proposes a minimum tax for taxpayers with an annual income starting at R$ 600,000, affecting about 140,000 people. The idea is to create space to exempt from Income Tax those earning up to R$ 5,000 per month.
The proposal, already approved in a special commission of the Chamber, defines that the rate for those earning up to R$ 50,000 per month would be close to zero, gradually rising to 10% for incomes above R$ 100,000 per month.
For Meirelles, generalized tax increases for high-income individuals and companies should be analyzed with caution. According to him, this could harm Brazil's image before investors by reinforcing the perception of a high tax burden — especially among emerging countries.
He states that countries with high tax burdens, such as those in Northern Europe, offer many benefits to citizens but are not leaders in international trade, unlike countries like China, Vietnam, and the USA.
A former presidential candidate for the MDB in 2018, Meirelles told BBC News Brazil that he has not assessed the personal impact of the proposal on his assets, but that this does not influence his opinion.
The income tax reform is an old promise of the Lula government and has been taken to international forums such as the G20 and BRICS. A 2024 study shows that Brazilians with monthly incomes above R$ 37,000 pay, on average, 14% in tax — the same percentage paid by those earning R$ 6,000.
The wealthiest, above that, would pay effective rates below 13%, revealing a regressive tax structure that exacerbates inequality.
Source: BBC News Brazil
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