Senate approves MP that readjusts minimum wage and expands income tax exemption range

[ad_1]

Proposal provides that those who earn up to R$ 2,640 per month will not pay income tax. Text establishes rule for valuing the minimum. Changes go to presidential assent. The Senate plenary during analysis of the MP that readjusted the minimum wage Roque de Sá/Agência Senado s The Senate approved this Thursday (24) the provisional measure that readjusts the minimum wage and expands the Income Tax exemption range. The text, approved without counting votes, would lose its validity next Monday (28) if it was not approved definitively. Now, the measure goes to the presidential sanction. On Wednesday night (23), the MP was approved by the Chamber with 439 votes in favor and one against – by deputy Luiz Lima (PL-RJ), who said he had “voted wrong”. The provisional measure initially dealt only with raising the minimum wage. Published on May 1, the text readjusted the amount from R$1,302 to R$1,320, a real gain (above inflation), as per President Lula’s campaign promise. According to the text, those who earn up to R$ 2,640 per month will not pay Income Tax, an amount equivalent to two minimum wages. Currently, this exemption is R$ 1,903. The loss of income from the expansion of the exemption range will be compensated by taxing the funds of the super-rich. The text also included the taxation of offshore funds, but the measure encountered resistance in the Chamber. After agreement, the deputies removed the excerpt through a highlight. The rules of the provisional measures come into force as soon as they are published in the “Official Gazette”, but to become definitive law they need to be approved by Congress. Minimum wage readjustment impacts a quarter of the Brazilian population, points out Dieese Policy for valuing the minimum wage The approved text establishes the policy for valuing the minimum wage, which will come into force from January 1, 2024. According to the proposal, the valuation will be corresponding to the sum of the inflation index of the previous year with the index corresponding to the real growth of the Gross Domestic Product (GDP) of two previous years. The inflation index that will be considered will be the National Consumer Price Index (INPC), accumulated in the twelve months ended in November of the year prior to the readjustment. In cases where the GDP does not grow, the readjustment will be based only on inflation.

[ad_2]

Source link