After the unanimous approval of the project that exempts Income Tax (IR) for those who receive up to R$5,000, the government moves to try to speed up the analysis of the proposal in the Senate. The Minister of Finance, Fernando Haddad, is participating today in a public hearing at the House’s Economic Affairs Committee (CAE) to address the issue.
The expectation at Palácio do Planalto is that the significant score among deputies, with 493 votes in favor and none against, will inhibit initiatives that could represent obstacles to the project in the House. The topic was approved by deputies earlier this month.
The text was sent by the government in March and took almost seven months of discussions. Palácio do Planalto’s plan is for the IR exemption to be valid for the IR declaration in 2026, the election year. To achieve this, the Senate will need to take less time than the Chamber and approve the text by December, that is, in around two months.
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The proposal envisages expanding the Income Tax exemption range for those who receive up to R$5,000 per month. Today, only those earning up to R$3,036 per month (the equivalent of two minimum wages) are exempt. The text also reduces the charge for those earning between R$5,000 and R$7,350.
On the other hand, the project creates a minimum tax rate of 10% for those earning more than R$50,000 per month. In practice, a surcharge on the richest will pay the bill for expanding the exemption.
The president of the Senate, Davi Alcolumbre (União-AL), decided that the project will be reported in the House by senator Renan Calheiros (MDB-AL) and will only go through the Economic Affairs Committee (CAE), which is chaired by the Alagoas native. Calheiros said that four public hearings will be held on the topic.
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The senator said he “will do everything possible” to ensure that the project does not undergo changes and returns to the Chamber. However, he stated that “the Senate will make the necessary changes, yes”.
