Correction of the income tax table would exempt another 18 million Brazilians, says study

A total of 18 million Brazilians could be exempt from Income Tax collection if the table used to calculate discounts were fully corrected for inflation since 1996, points out a survey by Unafisco Nacional (National Association of Tax Auditors of the Federal Revenue Service of Brazil) .

According to the entity, the correction would represent a tax waiver of R$ 184 billion. The study was updated based on inflation data released by the IBGE (National Social Security Institute) this Tuesday (10).

“When I talk about the correction of the table, I cannot speak about the statement that he delivered in April of this year, because that is already from the past, referring to data from 2022. To talk about the effects of the table correction, I have to make a projection for the future, for 2023 income that will be declared in 2024”, says Mauro Silva, president of Unafisco.

Since 2015, the IRPF table has not been corrected. Currently, anyone earning more than R$1,903.98 is subject to the Lion’s bite. According to Unafisco’s calculations, if there were full correction based on inflationary losses, all taxpayers with taxable income of up to R$ 4,723.77 would be exempt. A lag of 148.10%.

If the table were corrected according to the Unafisco Nacional study, taxation would be as follows:

Dependent deduction: BRL 470.37
Education deduction (limit): BRL 736.34

ELECTION CAMPAIGN PROMISE

The full correction of the IR table was a campaign promise by Jair Bolsonaro (PL) in 2018. In June 2021, the government sent a proposal, as part of the tax reform, to Congress. The Chamber of Deputies approved the text, which did not advance in the Senate.

One of the promises of President Luís Inácio Lula da Silva (PT) is the exemption for those who receive up to R$ 5,000. Although there was an expectation that the adjustment would be included in the PEC (Proposal for Amendment to the Constitution) of the Transition, the Minister of Development and Social Assistance, Family and Fight against Hunger, Wellington Dias (PT), coordinator of the party in the negotiations of the Budget of 2023 during the transitional government, stated that this is a “term” target.