As a way of compensating, the government also announced a tax for those earning more than R$50,000 per month; proposal released by Haddad will only be sent to Congress next year
Estimates indicate that expanding the exemption from could result in a loss of revenue of up to 50 billion reais. Despite being seen as an advance by tax auditors, there is a consensus on the need for complementary actions to guarantee its effectiveness and long-term sustainability. Unafisco Nacional, an entity that represents tax auditors at the Federal Revenue, positively evaluated the economic package announced by the government last Wednesday (28).
The entity believes that the exemption alleviates the tax burden on the middle class and stimulates consumption. However, he emphasizes that the success of the measure depends on effective implementation and additional measures to avoid loopholes that could compromise revenue, such as pejotização, which allows high-income individuals to pay less tax when registering as legal entities.
To compensate for the potential loss of 50 billion reais, the government plans to increase taxation on the richest. However, this proposal has generated criticism. Rico Cozzolino, partner at Levante Investimentos, classified the announcement as disastrous and poorly communicated, highlighting the government’s difficulty in cutting spending and implementing unpopular measures. Furthermore, Gustavo Sunk, economist at Suno Research, recalled that the package still depends on the approval of the . He highlighted that the government can approve both the spending review and the exemption and taxation, which would be neutral or positive. However, if only the exemption is approved without compensation, this could raise concerns.
Felipe Santana, an expert at Star Desk, stated that the ad had a tone of political propaganda and left the market frustrated. The Minister of Economy, Fernando Haddad, in a speech, did not clarify how the government intends to save up to 70 billion reais over the next two years. The package also includes new rules for military retirement and adjustment of the minimum wage, which adds more complexity to the economic scenario.
*With information from Rodrigo Viga
*Report produced with the help of AI
