In a significant move aimed at addressing Brazil’s primary budget deficit, the government is set to propose an independent income tax reform, separate from Congress’ ongoing consumption tax reform. Minister of Finance Fernando Haddad has emphasized the importance of this income tax reform, highlighting its role in eliminating the deficit by next year.

The forthcoming budget measure, which complements the income tax reform, will be presented to Congress in the near future. However, it is essential to note that the lower house of Brazil’s legislature has already granted approval for the consumption tax reform. The ultimate approval from the Senate is still pending.

President Luiz Inácio Lula da Silva has praised the government’s proactive approach to developing an ecological transition plan. This plan encompasses more than 100 actions, which will be implemented over a span of four years. Noteworthy components of the plan include initiatives focused on carbon credits, lithium exploration, and rare earths.

To further bolster their commitment to environmental sustainability, the Brazilian government plans to introduce a carbon credit bill to Congress in August. This bill is expected to play a crucial role in incentivizing carbon reduction efforts and fostering a greener economy.

Furthermore, the government intends to host an official presentation aimed at attracting businesses interested in producing products labeled as “clean energy.” This initiative aims to promote investment and innovation in the production of environmentally friendly goods.

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