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Dilma rejects correction of 6.5% in IR table, plans to edit MP with adjustment of 4.5%

Dilma rejects correction of 6.5% in IR table, plans to edit MP with adjustment of 4.5%

BRASILIA: Dilma Vana Rousseff, President rejected the correction of 6.5 per cent over the table of Income Tax for individuals in the calendar year 2015, but the minister of Institutional Relations, Pepe Vargas, said new interim measure less correction of the IR table will be sent to Congress in the coming days.

He said the government will make a 4.5 percent correction in IR table. This percentage had been proposed by Dilma through MP last year, but Congress extended the correction to 6.5 percent.

The IR table correction proposed 6.5 per cent would lead to tax breaks in the order of 7 billion raise, without be accompanied by the proper estimate of the impact budget and financial, violating the provisions of art, 14 of the Fiscal Responsibility Law.

In 2014, the IPCA inflation was 6.41 per cent. An adjustment in the IR table below this level means, in practice, a real tax increase.