Attempt to Change Income Tax

When we talk about tax reform, the subject affects the entire population, as it involves investors, entrepreneurs, and workers.

The current government has been trying to implement a reform since the middle of its term, but without success, and with no chances of happening this year due to the electoral process, the bet is on changing the Income Tax.

With the postponement on the last day of May 31, caused by the lack of senators to vote on the proposal, the idea is to move on to the issue of Income Tax.

According to tax law specialist Sandro Rizzato, the Tax Reform in general would affect different taxes, tax rates of some taxes, and the financial volumes collected by municipalities, states, and the Union. “This is not pleasing either the business sector or the service sector, but we have to think about the consumer who ultimately ends up paying the bigger bill,” he states.

Thus, the government's goal is to approve the Income Tax Reform, which was approved by the Chamber last year. “The project also faces resistance in the Senate due to the increase in tax exemption for individuals and the reduction of the tax burden for legal entities and the taxation of dividends,” explains Rizzato.

According to the lawyer, in a recent speech, the Minister of Economy Paulo Guedes stated that he intends to tax the 'super-rich,' which, of course, does not please high-level entrepreneurs who invest and also contribute significant amounts in taxes. “In short, the subject should continue, and the ideal is not to further hinder investments in the country and make life difficult for entrepreneurs, as the biggest current problem is taxing production and consumption, not income,” Rizzato points out.