Lula once again promises income tax exemption for those earning up to R$5,000

President Luiz Inácio Lula da Silva (PT) once again stated this Friday (2) his intention to exempt Income Tax, for those earning up to R$5,000 per month, until the end of his government. The statement was made during the event at the Volkswagen factory, in São Bernardo do Campo, where he participated in the announcement of the company’s new investments in Brazil.

Despite promising exemption, since the electoral campaign in 2022, all Brazilians who earn two minimum wages will pay income tax again in 2024, according to a warning from the National Union of Tax Auditors of the Federal Revenue (Unafisco Nacional).

The entity explained that this occurs because the Lula government increased the minimum wage, but did not correct the Income Tax (IR) exemption table. With the 10.16% increase in the minimum wage in 2024, the income of Brazilians who earn salaries increased from R$2,640 to R$2,824, a value that is within the salary range covered by the IR table.

Last week, Lula had already reinforced this same commitment. “We decided to exempt people who earned up to 2,640 reais. With the adjustment of the minimum wage, people who earn up to two minimum wages seem like they will pay Income Tax again, but they won’t, because we are going to make the changes now so they don’t have to pay. And I have a commitment to reach the end of my term with exemption for all people who earn up to 5 thousand reais”, she said in a radio interview Metropolisfrom Salvador (BA).

The increase in the IR exemption range was not included in the 2024 Budget. And if it depends on the government’s economic team, Lula’s promise should take some time to come to fruition.