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President Luiz Inácio Lula da Silva stated that he will consider more severe measures if a peaceful resolution is not found to address the soaring food prices. He made these remarks during an event in Campo Novo (MG) on Friday.
The government plans to ensure import taxes on goods like coffee, sugar, and meats, and provide incentives for producing essential food items in the upcoming agricultural plan. Additionally, they are urging state governments to guarantee ICMS for basic food products.
Lula stated that they are seeking a peaceful resolution, but if one is not found, they may need to resort to more severe actions in order to ensure affordable food for the population. No specifics were provided regarding these potential measures.
The government contemplated imposing taxes on agricultural exports due to their high prices, causing concern in the agribusiness industry. The president raised questions about the potential impact of these exports on food inflation during his speech.
Lula mentioned the prices of eggs and animal protein, supporting the profit of rural producers and investigating those responsible for price increases between farmers, cattlemen, and consumers.
Lula’s government is considering waiving R $ 25 billion to exempt income tax up to R $ 5,000.
The Ministry of Finance revised the estimated tax impact of exempting individuals earning up to R$5,000 from IRPF (Individual Income Tax). Initially set at R$35 billion, the revised calculation now suggests a reduction to R$25 billion, as reported by Folha de S.Paulo.
The government’s economic team aimed to lessen the effects of the measure while staying true to President Luiz Inacio Lula da Silva’s campaign pledge, resulting in recalculations following an internal team adjustment.
The government aims to implement a minimum tax of 10% for individuals earning over R $ 50,000 per month, covering profits and dividends, in order to offset the revenue loss from income tax exemptions.
Even when the top income tax rate is 27.5%, wealthy individuals typically end up paying significantly less in practice – often less than 10% as reported by the government.
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