President Jair Bolsonaro (PL) said this Tuesday (2/8) that he will have an update on the Personal Income Tax (IRPF) table in 2023, if he is re-elected. According to him, this initiative has already been agreed with the Minister of Economy, Paulo Guedes, but the percentage has not yet been defined.
“We had a commitment to change the table, yes, to seek an update. The pandemic came, then it was a disgrace for us, as well as some things I couldn’t put forward. It’s already been talked to Paulo Guedes, there will be an update of the Income Tax table for next year, it’s already guaranteed “, Bolsonaro said in an interview with Rádio Guaíba.
“I don’t know the percentage yet, but we’re going to start recovering that there. Because it’s actually becoming the income tax, an income reducer, and not a table. So, you are right, it is agreed with Paulo Guedes, this issue of correction of the table already enters here in the Budget Guidelines Law.”
The correction of the IR table was a campaign promise made by Bolsonaro in 2018. There was also no increase in the deductions allowed, such as dependents or education. Currently, only 8 million Brazilians are exempt from the payment. The salary range for exemption goes up to R$ 1,903.98 (slightly above the minimum wage, at R$ 1,212).
According to the National Association of Tax Auditors of the Federal Revenue (Unafisco), 15 million people who should be exempt will be taxed because of the non-correction of the table, reaching a 134.53% discrepancy.
Also according to Unafisco, if the correction of the table for inflation were applied, the exemption range would reach all those earning up to R$4,465.35 per month.
The last time the table was corrected was in 2015, when the then president, Dilma Rousseff (PT), established an average readjustment of 5.6% in the salary ranges for calculating the IR, a rate well below inflation that year. , which exceeded 10%.
See what it’s like today:
Salary of Up to BRL 1,903.98: IRPF rate is exempt and the deductible portion is 0;
Salary from BRL 1,903.99 to BRL 2,826.65: IRPF rate is 7.5% and the deductible portion is 142.8;
Salary from BRL 2,826.66 to BRL 3,751.05: IRPF rate is 15% and the deductible portion is 354.8;
Salary BRL 3,751.06 to BRL 4,664.68: IRPF rate is 22.5% and the deductible portion is 636.13;
Salary above BRL 4,664.68: IRPF rate is 27.5% and the deductible portion is 869.36.
Bolsonaro’s original proposal was to exempt all Brazilians who earned up to five minimum wages (just under R$5,000 at the time).
At the end of his first year in office, Bolsonaro modulated his speech and reduced the value of the exemption defended to R$3,000. In 2020, however, with the Covid-19 pandemic and the hole in public accounts, Bolsonaro began to admit that it would not be possible to raise the R$5,000 exemption floor until the end of the current term.
The topic is debated in the National Congress. In September 2021, the Chamber of Deputies approved a proposal from the Executive, defended by the team of the Minister of Economy, Paulo Guedes, which provides for readjusting the IR exemption range from the current BRL 1,903.98 to BRL 2,500 per month. . The text went to the Senate, where it is reported by Senator Ângelo Coronel (PSD-BA).
At the end of last year, Coronel presented an alternative project that provides for an increase in the exemption to R$ 3,300. If approved, 20 million of the 32 million taxpayers will be exempt.
In the same interview, when asked about maintaining Guedes in a possible second term, Bolsonaro said that the marriage with Guedes “has no expiration date, it is for the duration of the term”.
In June, Bolsonaro had already said that there is a mutual loyalty between him and the Minister of Economy, the preference to “continue” without changes in the position.