Brazil’s lower house Congress on Wednesday approved a bill that will tax the wealthiest inhabitants of the nation.
The move is expected to raise an astounding R$20 billion ($3.7 billion) in 2024 and up to R$54 billion ($10 billion) by 2026.
After passing the Chamber of Deputies in Brazil, the bill will now be sent to the Senate for approval.
One of the most complex tax systems in the world is expected to become simpler with the passage of tax reform.
After the votes passed, Finance Minister Fernando Haddad declared that a major obstacle had been overcome for the long-awaited tax reform.
The concept seeks to reroute the nation’s financial currents by taxing the wealthiest citizens’ assets.
This is not a little change to Brazil’s economic structure; rather, it is a profound realignment intended to strengthen public finances and alleviate wealth disparity.
This is viewed as an important first step towards improved economic justice in a nation where there are wide-ranging wealth discrepancies.