The executive secretary of the Ministry of Finance, Dario Durigan, said on Friday, 21, that the proposal to exempt who earns up to $ 5,000 per month of Income Tax (IR) aims to social justice, not a fiscal adjustment. The government was able to present this agenda because it has already taken care of public accounts, he said.
“Having arranged the house, having improved the business environment, having improved people’s lives, we want to do justice in this third year to, within this term of President Lula, deliver this reform of historical income,” said Durigan, during an interview with the “Power on Author” program, Capital letter.
The secretary recalled the approval of the new tax framework and stated that the IR reform germ was planted in 2023, when the economic team proposed the taxation of exclusive and offshore funds.
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Durigan also highlighted the Lula government’s economic indicators, citing the growth of Gross Domestic Product (GDP) in 2023 and 2024, the fall in poverty and employment data.
‘Call delivery’
The Executive Secretary of the Ministry of Finance also said that the approval of the tax reform of consumption and the proposal that exempts the income tax who earns up to $ 5,000 per month will be a “capital delivery” of the government of President Luiz Inácio Lula da Silva.
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“I’m not saying that this solves all the problems, but it’s two important movements,” said Durigan. “If this second part approved, and I have a lot of confidence that this will be approved this year by the National Congress, we have a capital delivery in this third term of President Lula, paving the way for new moves in the future.”
Taxation of ‘Super Rica’
The Executive Secretary of the Ministry of Finance also stated that the “ladder” proposed for the taxation of “super rich”, which will compensate for income tax exemption for those who earn up to $ 5,000, was created to avoid scams or tax planning.
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The government’s proposal is to create a minimum tax for these “super rich”, which have income exceeding $ 50,000 per month. This minimum will take into account the effective rate that focuses on the sum of all sources of income. It gradually rises until it reaches the 10% ceiling for those who earn from $ 1.2 million per year.
“You imagine that a millionaire who had an annual income of $ 1.1 million had to contribute 10% when someone who had an annual income of $ 990,000 did not have to pay anything more, we would have a mismatch, we would have an incentive for this makeup,” said Durigan. “This ladder has been created to avoid the scam, to avoid tax planning, to avoid makeup.”
