Brazil's lower house of Congress has approved a bill to expand income tax exemptions for the middle class, a move that awaits Senate approval. This legislation aims to relieve approximately 16 million Brazilians from income tax while proposing increased taxes for high-earning individuals.

• The bill broadens tax exemption eligibility for those earning up to 5,000 reais ($940) a month, an increase from the current 3,000 reais cutoff.
• The proposal has garnered support across political spectrums, including the opposition led by former President Jair Bolsonaro's party.
• High-earning individuals making over 50,000 reais a month would see their income tax rate gradually increase from an average of 2.5 percent to 10 percent.
• The plan, popular with supporters of President Luiz Inacio Lula da Silva's government, previously caused market upset and a significant depreciation of the local currency upon its unveiling last year.