Reporter of the Income Tax reform says that the project will be filed

Senator Angelo Coronel (PSD-BA), rapporteur of the Income Tax reform in the Senate, stated this Friday (3) that the project will be shelved. He also defended that a new proposal be created and said that the only part of the text that has a chance of being voted on is the one that deals with the new taxation rules for individuals.

“This project will not only be archived, it has to be extinguished and a new project born, with more base, with more content, a well debated project. A project that will really come, I don’t know if it pleases 100% of the Brazilian people , but at least that the vast majority embrace it,” he informed during an event promoted by the São Paulo Trade Association.

TO sheet, Colonel confirmed that he will not proceed with the project and said he considers that the text “is in no condition to be used”. He also stated that the project “gets to have 100% rejection by Brazilians who have a clear conscience”.

Initial bet by Economy Minister Paulo Guedes to cover the expenses of Auxílio Brasil, the IR reform was presented by the government and approved by the Chamber in early September. Since then, it has faced resistance in the Senate.

The text endorsed by the deputies brings, among other changes, a cut in the base rate from 15% to 8% of the IRPJ (the government wanted a reduction to 12.5% ​​in 2022 and 10% in 2023), as well as a cut in the CSLL in up to 1 percentage point (in most cases it drops to 8%). In addition, interest and dividend rates were set at 20%.

For individuals, the income tax exemption range would go from the current R$1,903.98 to R$2,500 per month.

The point most criticized by senators is precisely that relating to the collection of corporate taxes and taxation of profits and dividends. Colonel says he is considering submitting a report for approval only of the part related to changes in the tax table for individuals. However, there is no date for this to occur.

“That’s what I separated, I’m checking the data to see what impact it is having on federated entities. It’s an autonomous project. 2337 [projeto enviado pelo governo] it will remain dormant until a negotiation directly with the Chamber to present the reports with the modifications after we hear from everyone involved”, he highlighted.

The final version approved by the Chamber had been negotiated between the deputies and Guedes. Colonel, however, has not spared criticism of the text.

The congressman had already said that he agreed with crucial points in the text and that it could take years to present his report, which ended up preventing the government from using the project as support for the new social program.

This situation generated friction between the senator and the minister. “Paulo Guedes criticized me, said I didn’t understand the project, but I think he must have been wrong. From what I can see there, he doesn’t understand the project, because the project managed to upset the entire corporate world. When he reads the project, Paulo Guedes is also capable of being against it”, says Coronel.