IR: Lula says he will exempt up to two minimum wages – 01/23/2024 – Market

President Lula (PT) stated this Tuesday (23) that the government will make an adjustment this year to the Income Tax exemption table, indicating that anyone receiving up to two minimum wages will be exempt.

Last May, a provisional measure changed the IR exemption range from R$1,903.98 to R$2,112. To exempt those who received up to two minimum wages, the text also included a monthly deduction of R$528 at source.

“With the adjustment of the minimum wage, people seem like they will pay Income Tax again, but they won’t. Because we are going to make the changes now so that anyone earning up to two minimum wages will not pay IR. I am committed to reaching the end of my mandate, exempting everyone who earns up to R$5,000”, said the PT member in an interview with Metrópole da Bahia radio.

“It is a campaign commitment, but, above all, it is very sincere. In this country, those who live on dividends do not pay Income Tax and those who live on salaries pay Income Tax”, he continued.

The president also stated that the Minister of Finance, Fernando Haddad, knows that “adjustments” will be necessary.

“They are difficult, because we need to know that when we give up money, we have to know where we are going to get the other money,” said Lula.

The statements come one day after Haddad stated that the Executive would carry out a new review of the IR exemption range.

“We are going to carry out a new review in 2024 due to the increase in the minimum wage. President Lula has already asked for an analysis to adjust the exemption range. In this first semester, we have to forward the complementary laws that regulate the Tax Reform amendment”, said Haddad during his appearance on the Roda Viva program, on TV Cultura, on Monday (22).

Upon arriving at the Ministry of Finance, this Tuesday morning (23), the minister was asked by journalists about the studies to accommodate the new minimum wage in Income Tax and replied that “by the end of the month we will have this account”.