July 19, 2022

14:07

Eliziane Paiva – Amazon Agency

MANAUS – With the table of Income Tax (IR) without correction and with the new minimum wage forecast for 2023, amounting to R$ 1,294 brazilians who are currently exempt from IR will have to pay it. Those who receive 1,5 minimum wages monthly, or R$ 1,941 will have to settle their accounts with the Internal Revenue Service according to the current table.

The growth of inflation in the country combined with the lack of adjustments in the income tax table generates a historic increase in taxation on workers with lower purchasing power.

According to a simulation made by the National Sindifisco, which represents the tax auditors of the IRS, a person who receives R$ 5 thousand, after deductions, currently pays R$ 505.64 of income tax, however, if the lag of the table was corrected, this amount would be reduced to R$ 24.73, a difference of almost 2,000%.

According to the entity, if the IR table had been corrected for inflation, “no taxpayer whose monthly taxable income is less than R$4.427,59 would pay the tax.”

The president of the National Sindifisco, the tax auditor Isac Falcão, noted that when there is no adjustment of the table, the tax ends up affecting the poorest, who lost their purchasing power over the period.

“Not correcting the table is a way to increase the tax for this large portion of the population that, besides paying the income tax, also needs to deal with indirect taxes, which fall on consumption,” he concluded.

For the president of the Regional Accounting Council of Amazonas (CRCAM), Manoel Júnior, the stagnation of the income tax table for more than 20 years makes it impossible for many people to have purchasing power.

“At the moment of almost recession, this takes away the purchasing power of the Brazilian, will take the food from the table of the Brazilian with this inflation that is already running our money”, emphasized Júnior, while saying that the government has been breaking records in tax collection.

Also read: Income Tax 2022: Revenue extends deadline for submission of tax returns to May 31

Project of Laws

In the Senate, there are several projects providing for the correction of the individual tax table and the increase of the exemption range, among them, PLS 46∕2018, PLP 125∕2019, PL 2988∕2019, PL 999/2021 and PL 1198∕2022.

The project by Senator Veneziano Vital do Rêgo from the MDB of Paraíba, currently under analysis by the Economic Affairs Commission (CAE), determines that the Budget Guidelines Law (LDO) must contain a forecast for updating the monthly progressive income tax table on the income of individuals by the accumulated variation in the previous year of the Broad Consumer Price Index, the IPCA.

The need to correct the values of the income tax calculation basis is a huge appeal from society. With this, the purchasing power of low-income people is eroded, and they are the most affected. According to specialists, the correction of the income tax table benefits the worker’s pocket, increases consumption and, consequently, improves the economy.