The exemption from Income Tax (IR) for those earning up to two minimum wages will be maintained in 2025, said this Tuesday (14) the Minister of Finance, Fernando Haddad. According to the minister, this is an orientation from President Luiz Inácio Lula da Silva.
The change depends on the approval of a bill that updates the 2025 Budget, which has not yet been approved, and will only be sent after the elections for the Board of Directors of the Chamber and the Senate. “There must be an update [no Orçamento]Yes. We are considering this possibility to maintain the pace of changing the exemption range. It’s guidance we received from the president [Luiz Inácio Lula da Silva]”, said Haddad before going to the inauguration of the new Secretary of Communication, Sidônio Pereira.
With the delay in approving the Budget and sending the Income Tax reform, the Income Tax table for 2025 hasn’t changed. The exemption range remains at R$2,824 per month, the equivalent of two minimum wages in 2024. With the increase to two minimum wages, the value would rise to R$3,036, double the current minimum of R$1,518.
Regarding the Income Tax reform, Haddad declared that the government will wait for the elections of the two tables and the approval of the Budget to send the proposal. The minister reiterated that the reform will be a package that will cover several bills, to be sent in stages.
“There are several distortions in our Income Tax system, and we intend to correct these distortions, both from a distributive and fiscal neutrality point of view. It is not just one law that will resolve the issue of income, because there are several, it is not a package, but the measures will be forwarded, as they are ready”, highlighted Haddad.
The minister also informed that Lula is expected to sanction, later this week, the regulation of the consumption tax reform, approved by Congress in December. Haddad highlighted that there will be few technical vetoes, which will preserve the essence of the complementary bill approved by the Chamber and the Senate.
“We have already forwarded so much to the AGU [Advocacia-Geral da União] when to the Civil House, the reasons for vetoing the respective articles, but this has not yet been reviewed by the president. That’s why I can’t advance [os pontos a serem vetados]but these are quite lateral things and can cause technical and application problems. The essence of the reform is maintained, but it eliminates problems that may occur depending on the interpretation of the provisions”, said the minister.
