A priority for the Workers' Party (PT), Lula's government will face strong resistance in Congress regarding the taxation of profits and dividends.

247 - The bill dealing with the taxation of profits and dividends, considered one of the priorities of the government of President-elect Luiz Inácio Lula da Silva (PT), is expected to return to the agenda of the National Congress next year. However, the matter is not expected to have an easy passage, since "the very composition of parliament, with most of those elected representing capital holders, tends to hinder the debate," says the columnist. Mariana London, on UOL. 

The taxation of profits and dividends – a discussion that has been stalled since September of last year, although it was also supported by the economic team of Jair Bolsonaro's (PL) government – ​​is seen by the PT as a way to generate revenue aimed at implementing social policies that benefit the majority of the population.

"The idea of ​​both the elected and current governments is not to increase the tax burden, but to collect more taxes from those who earn money with capital and less from workers, especially those with lower wages," the report emphasizes. 

According to data from the 2021 Income Tax Return Report "Grandes Números das Declarações do IRPF" (Large Numbers of Income Tax Returns), the total taxable income declared for the 2020 tax year was R$ 1,97 trillion, while the total non-taxable income was R$ 1 trillion.

According to the document, within non-taxable income, profits and dividends totaled R$ 513 billion. Of this total, R$ 384 billion refers to large companies and the remaining R$ 129 billion is distributed among companies under the Simples Nacional tax regime.

The report also highlights that "to reduce resistance, the elected government should propose taxing profits and dividends within a plan that reduces taxes on businesses and labor."

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