Brazil's Bolsonaro considering minimum wage increase after leaked reports
Reuters
Published Oct 25, 2022 04:37PM ET
Updated Oct 26, 2022 05:52PM ET
BRASILIA (Reuters) -Brazil President Jair Bolsonaro's government is considering raising the minimum wage and civil servants' salaries above inflation, Economy Minister Paulo Guedes said on Tuesday, but he denied intentions to end middle class tax benefits.
The remarks, made at a virtual event on cooperativism, took place ahead of an Oct. 30 presidential election runoff vote in which right-wing Bolsonaro trails former leftist President Luiz Inacio Lula da Silva in polls.
Folha de S. Paulo newspaper last week reported the government was studying whether to end a constitutional obligation to adjust the minimum wage annually by at least the previous year's inflation, news that negatively hit Bolsonaro's campaign.
On Tuesday, the O Estado de S. Paulo newspaper reported on Tuesday that studies by the ministry proposed abolishing the ability to deduct medical and education expenses from income tax. Such a measure would mainly affect the middle class.
In both cases, Guedes acknowledged the existence of internal studies but attributed their preparation and leakage to Lula's Workers Party (PT) members who work in the ministry.
"On the eve of elections, they leak studies that were discarded," he said.
PT did not immediately respond to Reuters' request for comment.
The minister stressed that Bolsonaro's administration wants to approve a tax reform that reduces the burden on the poorest and taxes profits and dividends.
Later on Tuesday, the Economy ministry said in a statement that supposed studies, analyses, essays and opinions produced by the technical areas of the cabinet could not be "incorrectly taken as proposals from the ministry or the minister."
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.