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This measure will help people who have a lower income, since those who earn up to two minimum wages will not have to pay the tax.
From the 1st of May (Labor Day), according to the Federal Revenue, about 13,7 million Individual taxpayers will stop paying Income Tax in view of the new table correction rules, that is, people earning up to two minimum wages (R$ 2.640) will be exempt from the tax, according to the Broadcast website.
The percentage of people who will be exempt from paying income tax corresponds to about 40% of the total of 32 million income tax declarations received last year by the Federal Revenue Service.
Finance Minister Fernando Haddad's team designed a model that reduces the impact of the measure on public accounts with the aim of meeting President Lula's determination.
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The measure implemented by the new president may bring benefits to people with lower incomes, as it establishes that the income tax exemption range will increase from R$ 1.903,98 to R$ 2.112. In addition In addition, a simplified deduction per month of BRL 528 of tax will be allowed.
Damage or salvation?
With this new income tax measure, the loss of collection will be R$ 3,2 billion in 2023, from May to December, and R$ 6 billion in 2024, according to data from the Federal Revenue Service. These values contrast with the forecast of the National Union of Revenue Auditors, which projects a decrease in revenues of R$ 14 billion this year.
At the beginning of the year, Minister Haddad even declared that there would be no correction in the income tax table in 2023, and he wanted the changes to occur only in 2024.
However, in the face of political pressure with the negative reaction of income tax payers, the president-elect decided to start changing the IR table later this year.
New income tax table will favor people with lower income
According to data from the Federal Revenue, the simplified deduction of R$ 528 will guarantee that people earning up to R$ 2.640,00 monthly will be exempt from paying income tax.
In a statement, the agency states: “This operationalization serves for Brazilian men and women to feel the benefit immediately in their pocket”.
There will be no withholding tax for this income range, so people who receive up to this range will have to wait for the declaration in the following year to request a refund of what was withheld.
