Unions go to court to get income tax adjustment
JUSTIÇA DE SÃO PAULO DETERMINA QUE O MUNICIPIO AUTORIZE A EXPEDIÇÃO DE NOTAS FISCAIS ELETRÔNICAS.
9 de fevereiro de 2024
Por que Rússia deve crescer mais do que todos os países desenvolvidos, apesar de guerra e sanções, segundo o FMI
18 de abril de 2024Labor unions (“centrais sindicais”) filed a class action lawsuit in federal court yesterday demanding a 6.46% adjustment in income tax brackets based on inflation as measured by the Consumer Price Index (“INPC”).
[note: the government does not measure official inflation by the INPC, but by another index, the INPC-A (broad consumer price index).
In practical terms, if the union adjustment is accepted, workers making up to R$1,595.99 per month would be exempt from withholding taxes; without any adjustment, workers are exempt only if they make less than R$1,499.15.
One former union leader, now a federal deputy, Paulo Pereira da Silva (PDT-SP), explained that the objective was to protect salary gains. “Without an adjustment, salary increases that occurred last year will be eaten up by taxes,” he declared.
A government spokesperson said that if the adjustment is made the Treasury will lose R$5.7 billion in tax revenue.
