Chamber approves IR exemption for those earning up to two minimum wages

The Chamber of Deputies approved, on Tuesday night (12), the bill that makes it possible to exempt individuals from Income Tax (IRPF) of amounts up to two minimum wages (R$ 2,842.00). The measure is included in Bill 81/24, which will be sent to the Senate.

Authored by the government leader, deputy José Guimarães (PT-CE), the project incorporates the text of Provisional Measure 1206/24 on the same topic.

The text approved in the Plenary is a substitute for the rapporteur, deputy Emanuel Pinheiro Neto (MDB-MT), which excludes a section not included in the MP regarding permission given to the Executive Branch to update by decree the IRPF monthly progressive table from 2025 in order to maintain the zero rate bracket equal to two minimum wages.

The project thus follows the same wording as the MP, which has the force of law and is already in force, providing for exemption for income of up to R$ 2,259.20 after deducting the simplified discount of R$ 564.80 from the value of two salaries (R$ 2,824.00 minus R$ 564.80).

Although the objective is exemption for this income range, the correction of the first range also influences the discounts in the tax calculation in the other income ranges due to the progressivity of the table.

“Everyone who pays Income Tax in Brazil will benefit from this measure”, said deputy Alencar Santana (PT-SP), deputy leader of the government, who reported the changes to the project in the Plenary.

The readjustment of the table became effective by the MP from February this year and has a budgetary impact estimated at R$3.03 billion in 2024, R$3.53 billion in 2025 and R$3.77 billion in 2026.

“Electoral fraud”

Opposition parliamentarians criticized the proposal and classified it as “electoral fraud”, as President Luiz Inácio Lula da Silva promised an exemption of up to R$5,000 during the campaign for the 2022 Presidency.

According to deputy Cabo Gilberto Silva (PL-PB), deputy leader of the opposition, the government is taking a “poor measure” by granting the exemption below the electoral promise. Opposition parliamentarians even presented a suggestion to change the text to expand the exemption, but the text was maintained.

To counter the criticism, deputy Lindbergh Farias (PT-RJ) highlighted that until the end of the government there will be an exemption of R$5,000.

*With information from Agência Câmara de Notícias