Tax reform was not a promise and what income

Tax reform is a promise from the president Jair Bolsonaro (No party) since his campaign in 2018, which was presented in installments in two and a half years of his term. So far, the Ministry of Economy has presented two tranches of reform, but with some differences in terms of what has been pledged.

The first step in repair, Delivered to Congress in July 2020, consisting of a bill proposing to standardize PIS / Pasep (Social Integration Program) and Cofins (Contribution to Social Security Funding) in a single tax, called Social Contribution in Operations with Goods and Services (CBS).

a second slide From the proposal, focusing on rewriting the rules Income tax, to the president of the chamber, Arthur Lyra (PP-AL), last week. The bill, for example, increases the scope of the income tax exemption for individuals and sets taxes on profits and dividends for companies.

Check some differences between what the government has promised and what is in the proposals that have been revealed.

Delay in providing repair

The government had plans to announce tax reform in 2019. But delivery was delayed Month a Month Throughout that year, among the uncertainties about the details of the project, such as the creation of “New CPMF”, and layoffs, such as former Federal Revenue Service private secretary Marcus Sintra.

Because of the deadlock between the Ministry of Economy and Congress, where processed Other reform proposals, the government decided to submit its own project, however, in Itabas.

However, the first part was not sent to the House of Representatives until July 2020, four months after the pandemic began. The package of measures did not include a tax on templates CPMF. This is a controversial point, which dropped Cintra from the goods, and should remain for the last stage of reform.

Include two taxes instead of five

In July 2020, the Minister of Economy announced, Paulo Geddes, Delivered Personally The first tranche of tax reform for the presidents of the Chamber and Senate, at the time, Rodrigo Maya (no party-RJ) and Davi Alcolumbre (DEM-AP), respectively. In this project, the government proposed to unify PIS and Cofins in CBS (Social Contribution in Operations with Goods and Services), at a rate of 12%.

But the government had already considered the merger five Greeting is not complete.

“We’re going to cut, simplify, and reduce taxes for Brazil so that it grows. It’s tax reform. First, let’s take three, four, five taxes and combine them into one. It’s going to be called a single federal tax,” Guedes said, at 2019.

In addition to PIS and Cofins, there was already the possibility of unification Also IPI (Industrial Product Tax), CSLL (Social Contribution on Net Income) and Israeli occupation forces (Financial Transaction Tax).

Income tax exemption of R$2,500 less than promised

During his 2018 election campaign, President Jair Bolsonaro Prometheus Raising the scope of the Individuals Income Tax Exemption (IRPF) to up to five minimum wages, which is R$4,770 at the time and R$5,500 today.

But the proposal submitted by the government on Friday (25th) specified Exemption For those receiving up to R$2,500, which is less than half the target set by Bolsonaro. Under the current rule, only individuals with income up to R$ 1,903.98 are exempt.

The R$2,500 is less than the R$3,000 limit, which Bolsonaro commented on Janeiro this year.

The government has not corrected the scope of the exemption for inflation

According to members of the Ministry of Economy, the government has even considered adjusting the scope of the income tax exemption by economic inflation. But this was not what the submitted project saw.

a second Dice From the Sindifisco Nacional (National Federation of Federal Revenue Tax Auditors), released in February, the exemption should apply to those earning up to R$4022.89. According to the entity, the IR schedule has accumulated 113.09% since 1996, due to no adjustments or corrections below official inflation (IPCA).

Less impact on revenue

A change in the IRPF schedule, while increasing the scope of exemption and correction in other scopes, reduces collection by an amount 13.5 billion Brazilian Real In 2022, according to the Ministry of Economy.

Value 38.6% less than estimated 22 billion Brazilian riyals Cited by Guedes, if the monthly income of a worker exempt from income tax is R$3,000, as the President of the Republic wanted earlier this year.

The government kept the discount for education and health

An old flag raised by the Economy Minister, the system of deducting health and education expenditures from income tax was maintained in the federal government’s tax reform proposal.

The measure, according to Geddes, would be a means of reducing inequality, because the benefit is intended to Middle class.

“It is a costly subject for the middle class, who spend on the health and education of their children. In the end, you end up facing such situations, and it is a paradox: the poorest people spend R$100 billion. [com o SUS] And leave it to those who prefer 20 billion Brazilian riyals [em deduções]. Of course there is something wrong.”
Paulo Geddes