O Income tax It is a federal tax levied annually on the income and capital gains of individuals and corporations. The rate varies according to the taxpayer's income bracket, and the amounts collected are intended to finance public spending by the federal government.
The federal government is studying modifying a Provisional Measure (MP) that increases the range of exemption from the Individual Income Tax (IRPF) still this year. As revealed by the newspaper The state of Sao Paulo, the idea is to raise the limit for those who do not need to declare to two minimum wages. The amount is different from that promised during the presidential campaign of current President Lula (PT), who promised exemption for workers with incomes of up to R$5,000.
However, readjusting the table to a range of R$5,000 would be detrimental to public coffers, according to technicians from the Ministry of Finance, especially if it is done before the tax reform, as provided for in timeline.
The government is considering announcing the measures on Labor Day (May 1), together with the readjustment of the base salary, so that the salary would rise to R$ 1,320 and the exemption limit would be R$ 2,640.
The income tax table has not been readjusted since 2015. According to a survey carried out by Tax Analysts of the Federal Revenue Service of Brazil, the change in the Income Tax table “removed, in the last 12 months, more than R$ 100 billion from the income of workers".
A study carried out by the National Association of Auditors of the Federal Revenue of Brazil (Unafisco), published in January of this year, points out that 18 millions of Brazilians would benefit from exemption from the IR collection this year if the table were fully corrected for inflation since 1996. Thus, everyone with taxable income not exceeding R$ 4,723.77 would be exempt.
Today, those who receive up to R$ 1,903.98 are exempt from Income Tax. The speech is made to readjust the exemption range.