Brazil Politics: Congress Backs Tax Exemption in Boost to Lula

The lower house of Congress unanimously approved legislation to exempt monthly salaries of up to 5,000 reais ($938.50) from income taxes and reduce rates on those who earn up to 7,350 reais, putting one of President Luiz Inacio Lula da Silva’s key proposals on the brink of passage.

The bill still needs approval from the Senate, where it is expected to receive similar support, Finance Minister Fernando Haddad said Thursday morning.

Beyond the measure’s popular appeal, the lack of any significant changes indicates a renewed capacity for Lula’s ability to steer legislation through Congress with behind-the-scenes conversations that ...