Projection was released to deputies; Confederation estimates impact of R $ 9.5 billion just for mayors
The said 3rd (27.MAI.2025) that the IR (Income Tax) reform proposed by the Government of (PT) will have an impact of R $ 4.5 billion to states and municipalities.
The figures were released by the tax secretary, during a public hearing in the House of Representatives. This is the presentation he showed to the congressmen (PDF – 3 MB).
Lula wants to exempt from income tax who receives up to $ 5,000 per month. Part of the collection of municipalities and states comes from the “transfer” of the tax of civil servants to the coffers of local governments (understand below).
The reform will make fewer money from the statements to reach the governors and mayors, as the number of people will fall into the IRS tax.
According to Barreirinhas, the loss will be:
- R $ 3.0 billion for the mayors;
- R $ 1.5 billion for the governors.
The projections are well below the numbers presented by the representatives of the entities. The (National Confederation of Municipalities) expects a potential loss of $ 9.5 billion per year only for cities. This is the study presented by the entity (PDF – 3 MB).
In presenting the rules of income reform, the Ministry of Finance said the exemption puts more money in the hands of Brazilians, which would spend them more. By increasing the collection with municipal and state consumer taxes. It would be an indirect compensation of billionaire losses.
The president of CNM, also participated in the public hearing in the House on 3rd (27.MAI). He said at the time it is necessary to find a form “Direct” compensation of losses in state collection.
“You have to sit and see who is missing with the truth”Ziulkoski declared about the differences in the numbers presented by the entities.
Barreirinhas said the estimates are smaller because the IRS calculations consider the increase in collection in 2 transfer funds:
- States and Federal District Participation Fund – rise calculated at R $ 13.8 billion to 2025;
- Municipalities Participation Fund – Rise calculated at R $ 19.7 billion in 2025.
In addition, the tax authorities claim to consider compensation with the additional tax for those who earn over $ 600,000 per year – unused to compensate for the widest exemption collection losses.
Why municipalities and states lose
A device of Articles 157 and 158 determines that the entire IRPF (Individual Income Tax) retained at the source on the salaries of civil servants of cities and states should be with the coffers of mayors and governors. THE Poder360 that the potential loss is $ 25 billion per year.
Lula’s economic team argues that the tribute is federal, which would justify the change without dialogue with the other federative entities.
Among the economic teams of mayors and governors, the perception is that the most affected will be small cities – these are more dependent on the collection with the income tax withheld at source.
Farm dodged before
The federal government detailed the rules of the exemption on March 18. That day, farm members spoke to journalists about the measure.
Questioned by Poder360 on what would be the impact on municipalities and states, the executive secretary of the Ministry of Finance, Dario Durigan, “Ask the states”.
Estimates of the tax authorities of this 3rd (27.MAI) show that the organ retreated and started to make its own calculations.
