By Congress in Focus
President Jair Bolsonaro (PSL) said, at the end of the morning of Friday (4), that his economic team will decrease income tax rates for individuals. He also stated that he will increase the financial operations Tax (IOF) for those who have applications outside the country. Bolsonaro said the announcement about the income tax should be done today by the Minister of Economics, Paulo Guedes.
Currently the maximum rate is 27.5%, valid for those who have monthly income above R $4,664.68. The idea of Bolsonaro’s economic team is to lower the percentage to 25%.
According to the newspaper O Globo, which anticipated the possible changes in the income tax on the morning of today, the government studies establish a single rate, which can range between 15% and 20% for taxpayers and increase the exemption range of the IR. Those who earn less than R $1,903.98 do not pay IR currently.
There are four contribution ranges since 2015. Those who earn R $1,903.99 AR $2,826.65 pay 7.5%, those who receive between R $2,826.66 and R $3,751.05 pay 15%. For those who win from R $3,751.06 to r $4,664.68 monthly the rate is 22.5% and the maximum rate, of 27.5% is applicable for those who earn more than R $4,664.68.
Iof
Bolsonaro also said that the decree on the IOF is already signed and that the percentage is “minimum”, but did not inform how much the increase will be. He stated that IOF’s increase was found to fulfill a requirement of a bill approved at the end of 2018 and sanctioned by him yesterday (Thursday, 3). The law predicts that tax incentives in the north and northeast regions will be extended to 2023.
Source: www.congressoemfoco.uol.com.br
