Nearly 29 million people would be exempt from income tax if the tax brackets were adjusted for inflation.
The accumulated discrepancy in the Income Tax table is 148,1%, according to data from the National Association of Federal Revenue Auditors of Brazil (Unafisco).
247 - Nearly 29 million Brazilians earning up to R$ 4.723,78 per month would be exempt from income tax in 2024 if the tax brackets were fully adjusted for inflation. According to... G1The number is more than double (20 million more exempt individuals) the 8,8 million currently registered.
According to the National Association of Federal Revenue Auditors of Brazil (Unafisco), the accumulated shortfall is 148,1%. "This percentage considers the adjustments made and the accumulated inflation from 1996 – the year in which the personal income tax table ceased to undergo annual adjustments – until December 2022," the report emphasizes. During Jair Bolsonaro's (PL) four-year term alone, the accumulated shortfall reached 31,49%.
President Luiz Inácio Lula da Silva (PT) has already defended exempting those earning up to R$ 5 from income tax. Following this line, the most advanced project on the subject exempts, starting in May, those earning up to R$ 2.112. The adjustment of the tax table will be made through a Provisional Measure, which needs to be approved by the National Congress to become law.