Marcos Cintra, Former Secretary of the Internal Revenue Service | Photo: Pedro França / Senate Agency
Economist Marcos Cintra, who was secretary of the Internal Revenue Service during the first nine months of Paulo Guedes’ administration at the Ministry of the Economy, says the lower middle class will pay for the overhaul of the table. personal income tax (IRPF), as you will no longer be able to take advantage of the 20% simplified discount.
The new rules are planned in the stage of tax reform which can be voted on this Tuesday (17) in the plenary of the Chamber of Deputies. On the one hand, the project extends the IRPF exemption range from R $ 1.9,000 to R $ 2.5,000 per month, and also updates the other tax brackets, which benefits the taxpayers. On the other hand, it prevents the use of the simplified rebate by taxpayers with incomes above R $ 40,000 per year.
“It is said that [a proposta] this will increase the progressivity of the system, which, in a way, will impose more pressure on the highest income groups. Once again, this objective is not achieved, neither in the functioning of the natural person nor of the legal person. In the functioning of individuals, it will not be affected, as the lower middle class, which has annual incomes between R $ 40,000 and R $ 80,000, will be responsible for most of the replacement of the correction table. the standard 20% discount, “the former revenue secretary said in an interview with” O Globo “newspaper.
“A lot of the adjustment will fall within that range, and after the R $ 80,000 everything is as it is. This is a big flaw, because the adjustment will not be in the upper income bracket, but in the middle income bracket. It’s a technical flaw, ”added Cintra. It also modifies the taxation of companies (IRPJ) and the return of the tax on dividends.
Cintra said she had never seen “a serious country make such a big reform, in such a big tax, in a month”. For him, the project started with the objective of correcting the IR table, President Jair Bolsonaro’s campaign promise, but “he ended up being polluted by a series of changes, which, in addition to being inappropriate to the at present, are extremely complex and irrelevant “.
Cintra was fired from Federal Revenue in September 2019, for defending the takeover of the CPMF. The transaction tax is however still defended today by Paulo Guedes.