Government Investigates Additional IR Rate for High-Income Individuals, New Head of Revenue Service Reports | Economy



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The new federal revenue secretary, Marcos Cintra, said on Wednesday that the Jair Bolsonaro government was considering creating an additional tax rate for high-income earners.

Taxpayers who receive up to R $ 1,903.98 per month, net of social security contributions, are exempt from this tax.

From this amount, deductions are calculated on the basis of a rate of return of 7.5%, 15%, 22.5% or 27.5%. Today, the 27.5% rate is the same for income above R $ 4,664.68.

"The Brazilian tax system must have some degree of progressivity, and we will not go so far as to have a single tax rate [do IR das pessoas físicas] but few tax rates. are absolutely sufficient, we have no parameters [a partir de qual renda incidiria essa alíquota maior para alta renda]"said Cintra.

According to the economist, a tax reform project is being badyzed and needs to be discussed with the National Congress. According to him, this is to simplify and reduce the tax burden, which accounted for 32.4% of gross domestic product (GDP) in 2017.

"We are still badyzing the various alternatives [para o imposto único] Tax [imposto sobre valor agregado] We can work on a tax on financial transactions, on a tax on billing.We must take complex measures.First of all, it is important to clean our tax system, "he said.

The text of the tax reform has already been approved by the special committee of the House and must be badyzed by the plenary of the House before going to the Senate.

Jair Bolsonaro had already rejected the eventual creation of a tribute in the mold of the CPMF. The theme also generated tension in the campaign and foreclosures on the market.

The new chief revenue officer says he will badyze the simplification project for PIS / Cofins, which already exists in federal revenue.

"The tax office has a very good PIS / COFINS simplification project, I will badyze this project in detail and we can start a process of rebuilding the tax system by simplifying existing taxes, such as PIS / Cofins. a project that will immediately bring great benefits to society, "he said.

He further stated that it was important that the government simplify existing taxes to make them "friendlier, simpler and less bureaucratic".

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