The Government sent to Congress, Tuesday (18), a bill that expands the range of exemption of the income tax of individuals (IRPF) for workers who earn up to $ 5,000 per month. The proposal also provides for gradual discounts for those who receive between R $ 5,000 and R $ 7 thousand per month. If approved, the measure enters into force since 2026.
By the end of the year, the Planalto Palace wants to collect the exemption from the tax at R $ 3,036, equivalent to two minimum wages. Currently, this limit is $ 2,824. This change also depends on the approval of the legislator.
If the proposal is sanctioned, about 10 million taxpayers will no longer pay the income tax from 2026.
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Who will benefit from it?
For the project, the total exemption is valid for those who receive up to $ 5,000 per month. Those who earn above will have partial discounts:
- R $ 5 thousand: 100% exemption (reduction from R $ 312 to zero);
- R $ 5.5 thousand: exemption of 75% (reduction from R $ 436.79 to R $ 203.13);
- R $ 6 thousand: Exemption of 50% (reduction from R $ 574.29 to R $ 417.85);
- R $ 6.5 thousand: exemption of 25% (reduction from R $ 711.79 to R $ 633.57);
- R $ 7 thousand or more: No discount (tax payment complete with R $ 849.29).
For those who earn over $ 7 thousand and up to R $ 50 thousand per month, taxation will follow the current model, without changes.
How will the loss of revenue compensate?
The reduction of collection, estimated by R $ 27 billion to 2026, will be compensated by the taxation of very high income taxpayers. Those who receive more than $ 50 thousand per month, which is equivalent to $ 600 thousand per year, will be taxed in a progressive model, with rates ranging from 2.5% to 10%, reaching the roof for an income greater than $ 1.2 million per year.
The taxation will focus on salaries, rentals, dividends and other sources of income, but will not include exempt financial investments, pension, inheritance or indemnity.
The proposal to tax the richest resistance to the congress, in which parliamentarians promise changes in the text.
Popularity, political impact and relief in the income of the middle class
The government sees the expansion of IR exemption as a strategy to conquer the middle class. During the project signing ceremony, Luiz Inacio Lula da Silva (PT) said the measure “won’t hurt anyone“And it will allow the low income population to have better living conditions.
“It will not make those who contribute to stop eating meat, salad, prawns, lobster, filet mignon. But it will allow the poor to eat some meat, both muscle, rump, contrast or liver“Said Lula.
The account was delivered symbolically to the mayor, Hugo Motta (Republicans-PB), where the process should start. The President of the Senate, David Alcoholumbre (Union-AP), did not participate in the event because it was in another solemnity.
Finance Minister Fernando Haddad defended the proposal and said that, if approved, he will adversely influence about 100,000 higher income taxpayers, while 20 million people will pay less taxes.
The congress must change the text before the vote. Hugo Motta said that the Chamber will be faithful to the government, but there will be adjustments. “The congress, in its diversity, will make changes in this matter. Changes that certainly take the proposal to improve“He said.
The presentation of the project has undergone delays. Originally announced in November last year, it was postponed after negative repercussions on the financial and tall market of the dollar. The government waited for changes in the congress command before formalizing the text.
Source: Terra
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