Income Tax table can be automatically readjusted when inflation reaches 10%, the rapporteur proposes

After harshly criticizing the current text of the IR (Income Tax) reform, the bill’s rapporteur, senator Angelo Coronel (PSD-BA), stated that he will present an alternative proposal for taxation for individuals. The project will create a kind of inflation trigger, automatically correcting the ranges in the table when inflation reaches 10%.

“When inflation reaches 10%, a trigger is triggered that automatically readjusts all income tax brackets. I think it’s fair. I know that maybe the economy will question that it’s absurd. But, if the government also collects fruits from inflation, why not put inflation on the charts?” said the senator.

The statements were made in Lisbon, where Angelo Coronel participated in a legal forum organized by Minister Gilmar Mendes, of the STF (Supreme Federal Court).

“We are there with the accumulated inflation rate of 41% in the period of the table readjustment. I think it is inhumane, when we have day-to-day inflation, in rice, beans, electricity, in the condominium, and that exemption range is frozen for all this time”, he justified.

According to the senator, his bill also expands the first income tax exemption range, which would now be R$ 3,330. “The government proposed R$ 2,500 for the first exemption range, but I think it’s still not much”, he added.

The rapporteur claims that he has not yet presented the bill because he has not been able to “collect data from the Internal Revenue Service to see what impact this increase would have”.

At the event in Lisbon, the senator once again criticized the IR reform bill approved by the Chamber and stated that he should not submit a report on the proposal, which he classified as “a long piece, literally out of focus, poorly written, poorly thought out “.

“I came to the conclusion that the text only fits the famous dispatch from a drawer. The text can’t even be taken away to be rejected. It shouldn’t even be appreciated,” he added.