Governo amplia isenção do Imposto de Renda para até R$ 2.640 em maio

Minister of Labor, Luiz Marinho, announced on Friday, March 28th that there will be an exemption from Individual Income Tax (IRPF) for those who earn up to R$ 2,640 from May onwards. The aim of the measure is to expand the tax exemption bracket and benefit the working class, especially those who have lower salaries.

According to the government, the exemption bracket will be increased from R$ 1,903.98 – which has been in effect since 2015 – to R$ 2,112. In other words, those who earn up to R$ 2,640 will not pay IR as of May. In addition, there will be a monthly discount of R$ 528 straight from the source, meaning the tax that would be due by the employee.

The measure aims to fulfill President Lula’s (PT) promise to exempt all who earn up to two minimum wages, which from May onwards will be R$ 1,320. In practice, by combining the two mechanisms, those who earn up to R$ 2,640 will not pay IR, neither at the source nor in the annual adjustment statement.

Approximately 13.7 million people will be exempt from paying IR due to the increase in the exemption bracket, which represents about 40% of the total number of taxpayers. The Federal Revenue Service informed that the taxpayer will not need to do anything to guarantee the exemption, as by May the Revenue’s systems will be updated to allow for the automatic granting of the R$ 528 discount.

When asked whether the measure would be instituted by an act of the president or the Federal Revenue Service, Marinho said it would be from the Revenue and that it would take effect from May 1st. According to the minister, the process of formalizing the decision “is progressing.”

However, the proposal has an impact on public finances. With the exemption from tax, the government will not collect R$ 3.2 billion this year, and in 2024 the impact on the accounts will be R$ 6 billion.

The measure is viewed favorably by the population, especially by the workers who will benefit. The expansion of the tax exemption bracket will bring financial relief to these people, who will have an increase in their purchasing power.

However, some experts argue that the measure could generate inflationary pressure, as there may be an increase in demand for goods and services. In addition, there are concerns about the impact of the measure on public finances and government revenue.

*With information from G1.