Minister of Labor confirms increase in income tax exemption to R$ 2,640, starting in May

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Luiz Marinho also stated that this is the first step in President Luiz Inácio Lula da Silva’s commitment, made during the campaign, to exempt those who earn up to R$ 5,000 from Income Tax. The Minister of Labor, Luiz Marinho, confirmed this Friday (28) that from May the exemption from Income Tax for Individuals will be increased for amounts up to R$ 2,640.00. Currently, the exemption goes up to R$ 1,903.98. “Along with President Lula’s commitment to exempt salaries of up to R$5,000 from the Income Tax table. there will be no withholding on the Income Tax payroll”, said the minister. According to him, this measure “will help a lot” in the purchasing power of the working class, especially of low wages. Asked whether it will be an act by the president or by the Federal Revenue, Marinho said that it will be by the Revenue and that it will be valid from May 1 and that “it is in the process” to formalize the decision. The action was anticipated in February by GloboNews journalist Valdo Cruz, also a g1 columnist. 13.7 million people benefited With the increase in the exemption range, according to information from the Federal Revenue Secretariat, 13.7 million people will no longer pay income tax as of May. The number represents about 40% of the total taxpayers. To make the measure viable, the exemption range will increase to R$ 2,112 and there will be a monthly discount of R$ 528 direct at source. That is, on the tax that would be due by the employee. According to the Federal Revenue, the taxpayer will not need to do anything to guarantee the exemption. By May, the Revenue systems will be updated to allow the automatic granting of the R$ 528 discount. With the proposal, still according to information from the Federal Revenue, the government will no longer collect R$ 3.2 billion this year, considering the measure will come into effect from May. In 2024, the impact on accounts will be R$ 6 billion. Minimum wage increase This Thursday (27), the government had already informed that in the next few days President Luiz Inácio Lula da Silva will sign the provisional measure establishing the minimum wage of R$ 1,320 as of May this year. Currently, the value is R$ 1,302.00. Minister Marinho also informed that the government’s proposal for the permanent appreciation of the minimum wage will use the same formula adopted in the past administrations of Lula and Dilma Rousseff. The formula takes into account the inflation of the previous year and also the GDP variation of two years before. The government intends to approve the project by the end of this year so that the minimum wage is corrected by the new policy as of January 2024. According to information from the Inter-Union Department of Statistics and Socioeconomic Studies (Dieese), the minimum wage serves as a reference for 60.3 million people in Brazil, of which 24.8 million are beneficiaries of the National Institute of Social Security (INSS).

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