The Minister of Finance, Fernando Haddad, said this Thursday that the income tax reform project, presented by the government the day before and detailed this Thursday, is based on fiscal neutrality and does not aim to increase revenue, but to ensure tax justice .
Speaking at a press conference to detail the tax package, Haddad also stated that Congress will have time to analyze the income tax reform, which, if approved by parliamentarians next year, will be valid from January 1, 2026.
On Wednesday, Haddad had already announced, in a speech on national television, that the government intends to increase the income tax exemption range for those who earn up to 5 thousand reais per month, with the initiative being compensated by the increase in taxation for those who earn above 50 thousand reais per month.
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The minister announced this Thursday that taxation for those earning more than 50 thousand reais will have a minimum rate of 10% and will apply to all income, including rent and dividends.
As an alternative compensation measure for the increase in the IR exemption range, Haddad also indicated that the tax exemption for health reasons for retirees will be limited to those earning up to 20 thousand reais.
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He pointed out that the IR exemption range for individuals will already reach those who earn more than 3 thousand reais per month next year and that the discussion of the reform itself will be delayed until 2025.
According to the minister, those who earn up to R$7,500 will also benefit from the reform, as they will pay a lower rate. He also pointed out that the impact will be much smaller than expected by the market.
The announcement of the IR reform on Wednesday, which came together with an expected package of cost containment measures, was a surprise for financial agents, generating pressure on Brazilian assets.
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At 9:23 am this Thursday, the spot dollar rose 0.79%, to R$5.9608 on sale.
