New table of the IR table will open the exemption range

Adjustment

Small debt renegotiation project was also completed

The Ministry of Finance finalized the proposal to correct the Individual Income Tax (IRPF) table, which will also expand the exemption range, which is R$ 1,903.98. The proposal now awaits the final decision to be given by the President of the Republic, Luiz Inácio Lula da Silva (PT).

According to a PT advisor, Fernando Haddad, spoke for 40 minutes at a meeting of the National Directorate on fiscal and monetary policies. The minister informed party leaders that he had also completed the Desenrola program, aimed at renegotiating small debts.

IR table

The last update of the Income Tax table was made in 2015. The lack of updating has meant that more and more Brazilians, especially those with lower incomes, start paying this tax.

With the value of the minimum wage at R$ 1,302, for the first time in the country’s history, people who earn 1.5 minimum wages will be taxed. The current value of the minimum was defined in the previous government’s budget proposal.

During the election campaign, Lula even promised to expand the exemption range to R$5,000 throughout his term in office. At the meeting with trade union centrals, in January, Lula reiterated the idea, emphasizing that, in Brazil, “those who earn a lot pay little”.

“I have a fight with PT economists. People say ‘if you exempt up to R$ 5 thousand. That’s 60% of this country’s income’. So let’s change the logic, let’s decrease for the poor and increase for the rich, ”he said.

campaign spending

At the opening of the board meeting, the president of the PT, deputy Gleisi Hoffmann (PT-PR), anticipated a point of speech that Haddad would make in the sequence, in the closed-door meeting with the supporters, about the expenses made by the previous government, aiming at the re-election of Jair Bolsonaro.

“The use of the machine was absurd. Haddad brought us a staggering calculation: around BRL 300 billion was spent on tax exemptions, aid, credit, parliamentary amendments”, he emphasizes.

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