Guedes sets meeting to hear left’s proposals on IR

Minister of the Economy Paulo Guedes. Photo: Fabio Rodrigues Pozzebom / Agencia Brasil / EBC.

Dissatisfied with the lack of consensus on the income tax reform project, the Minister of the Economy Paulo Guedes has scheduled a meeting next Tuesday (24) with the deputy Alessandro Molon (PSB-RJ), head of the opposition in the Chamber of Deputies, to hear proposals from left-wing parties on the issue. The information comes from the newspaper “Folha de S.Paulo”.

The opposition bloc is made up of PT, PSOL, PSB and Rede. Among the points to be discussed would be the adoption of a progressive tax rate on dividends. In addition, the opposition defends maintaining the simplified declaration as it is today – the bill proposes to limit the option to those with an annual income below R $ 40,000 -, and a range higher exemption from personal income tax (IRPF) – the current proposal is for a ceiling of R $ 2.5 thousand.

According to the newspaper, it is now expected that the text will be analyzed by the plenary in two weeks, and not the next, as had been agreed between the deputies on Tuesday (17). Members of the government’s economic team are said to be uncomfortable with the report by MP Celso Sabino (PSDB-PA), who allegedly made excessive concessions to get the text approved.

Federal Revenue Secretary José Tostes Neto on Wednesday (18) said at an event that extending the dividend tax exemption, a strategy Sabino adopted to gain market support, generated the risk of the so-called “pejotization”.

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