Lula: IR exemption proposal up to R $ 5,000 will be sent to Congress soon

The president Luiz Inácio Lula da Silva (PT) It said on Thursday (30) that only final adjustments to the government to send to Congress the proposal for exemption from income tax to those who earn up to $ 5,000. According to him, the pending point concerns tax compensation to avoid negative impact on public accounts.

“It’s just making an adjustment to compensation,” said Lula, without giving details about the alternatives under study.

Finance Minister Fernando Haddad had already nominated in December that the government found an inconsistency in the legal entity tax calibration device (IRPJ), which delayed the submission of the reform to the congress. In addition, it has stressed that any change will need to maintain tax neutrality, that is, to ensure that government collection is not reduced.

The proposal provides for compensation, to avoid loss of revenue from a new 10% minimum tax on income over $ 50,000 per month. According to the newspaper The globethe economic team negotiates an agreement with Congress so that the exemption only comes into force with compensation measures.

According to accounts of the economic team, the exemption of going up to R $ 5,000 would benefit 16 million people and would have an impact of R $ 35 billion on the public coffers. The measure, however, is criticized by the market for doubt about the compensation mechanism, and the sustainability of the long -term policy given the growth of public debt.