Tax reform benefits low-income earners, increases progressivity, but lowers revenue.
The new Personal Income Tax Law reform in 2007 led to lower taxes for people with lower incomes and joint returns. Pensioners, business owners, and employees with dependents also saw some tax relief. Overall, the reform increased the progressivity of the tax system, meaning it became slightly more fair. However, the government will collect less tax revenue, which could limit its ability to redistribute wealth.