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Chamber Sets Oct. 1 Vote on Income Tax Exemption Up to R$5,000 as Lira Stresses Fiscal Balance

The relator says the measure follows the annuality rule, giving the Senate until December to review any changes.

Overview

  • Lira denied using the proposal as political leverage and said he expects the core of the bill to be preserved in next week’s vote.
  • He sent cost estimates to Finance Minister Fernando Haddad and Minister Gleisi Hoffmann on potential offsets, including removing debêntures incentivadas and Prouni from the base of the minimum tax on high incomes.
  • The relator anticipates numerous amendments, including indexation of brackets, which he estimated could cost R$80–100 billion per year.
  • Deputy Paulinho da Força submitted an amendment to lift the exemption to R$7,000 after floating a linkage to the PL da Anistia, a connection that Chamber leadership rejected.
  • Ex-Revenue secretary Everardo Maciel questioned the drafting and fiscal compensation, as analyses suggest exempting up to R$5,000 could reduce the number of taxpayers from roughly 43–45 million to near 15 million.