Congressman Chico Vigilante advocates for income tax exemption for all those earning one and a half minimum wages in 2023.

247 - District deputy Chico Vigilante (PT) sent a letter this Tuesday (17) to the Minister of Finance, Fernando Haddad, to ask the Federal Revenue Service to issue a normative instruction determining, “for social and administrative economy reasons”, that no Income Tax be withheld at source for workers whose received amounts exceed by R$ 50 the maximum ceiling for people exempt from filing a tax return. As the parliamentarian explained, since there was no correction of the Personal Income Tax (IRPF) table by the previous government, under Jair Bolsonaro, in recent years, thousands of workers will have to start paying IRPF at source in 2023. “It was very irresponsible of Bolsonaro and former Minister Paulo Guedes (Economy) not to have corrected the income tax, which will greatly harm workers,” emphasized Vigilante.

According to the rules, workers who earned up to one minimum wage in the base year of 2022 do not need to file an income tax return in 2023, as they are legally exempt from the tax. The same rule applies to those who earned one and a half minimum wages in 2022, which was R$ 1.818, because, with the previous minimum wage ceiling, the salary does not exceed the maximum value for tax exemption, which was R$ 1.903,98. However, this year, the minimum wage update raised the ceiling to R$ 1.302 (which is also subject to a projected increase by the Lula government). 

This means that people who earn up to one and a half minimum wages in 2023 will lose their exemption and will start paying income tax – since they will earn R$ 1.953. Thus, by a difference of R$ 50,98, they will exceed the ceiling established by the Federal Revenue Service of R$ 1.903,98.

“I give as an example the situation of domestic workers, kitchen helpers, cafeteria workers, cleaning ladies and other workers, currently exempt, who will have a few reais per month withheld at source. These small amounts will be refunded, but will require many to file an annual tax return to be entitled to the refund, which will cause them enormous inconvenience,” the deputy emphasized. 

Chico Vigilante highlighted that the weight of these withholdings in federal revenue is negligible, therefore, he requested an exemption. “We are talking about employees from the most diverse professional categories. Most of them, voters of President Lula, will pay income tax for the first time in their lives this year due to the previous government. This collection, besides being unfair, will bring brutal hardship to everyone,” the congressman emphasized.

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