Request was approved by symbolic vote; If approved, the proposal will replace the MP sent by the government on February 6
The Chamber of Deputies approved this Tuesday (27.Feb.2024) the urgency of bill which exempts from IRPF (Individual Income Tax) those who receive up to 2 minimum wages per month. The request was approved by symbolic vote.
With urgency, the analysis of the proposal is accelerated and will be carried out directly in plenary, without going through thematic committees. The request was included on the agenda after a meeting between the president of the House, Arthur Lira (PP-AL), and party leaders.
The project is authored by the leader of the Government in the Chamber, deputy José Guimarães (PT-CE). The approval of the urgency request is a victory for the president’s administration Luiz Inácio Lula da Silva (PT).
According to the project, the ceiling of the exemption range goes from R$2,112 to R$2,259.20. However, sAccording to the Ministry of Finance, in practice, anyone who receives up to R$2,824 – equivalent to 2 minimum wages – will not pay income tax.
This is because the government introduced a simplified discount of R$564.80, which is optional. This was the way found by the Federal Revenue to cover those who receive 2 salaries without causing a strong impact on the accounts.
IMPACT
The IR exemption for those earning up to 2 minimum wages has a cost. This is money that no longer enters the government's coffers. One of Planalto's priorities this year is to increase revenue to finance public policies.
A survey published by Power360 showed that the readjustment should cost at least R$6 billion to public coffers in 2024.
BILL X PROVISIONAL MEASURE
On February 6 of this year, President Lula published the MP (Provisional Measure) 1,206 of 2024which established exemption for up to 2 minimum wages and took immediate effect. If approved by Congress, the bill that began to be circulated in the Chamber this Tuesday (Feb 27) will replace the MP.
The MP is valid for 120 days. During this period, a mixed commission, made up of deputies and senators, must be installed in Congress to analyze the text. Then, the plenary sessions of the House and Senate need to approve it. To date, the commission has not been installed.
However, the presidents of the Lower House, Arthur Lira, and the Upper House, Rodrigo Pacheco (PSD-MG), differ in relation to the rite of MPs in Congress.
Lira prefers and has already signaled to the government that Planalto's proposals be sent in bills, a format that gives the Chamber more freedom for discussion. Pacheco, more traditional, defends the functioning of joint committees.
This report was produced by journalism intern Maria Laura Giuliani under the supervision of assistant editor Israel Medeiros.
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