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Guedes' team studies removing deductions for health and education expenses from Income Tax

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The team of the Minister of Economy, Paulo Guedes, defended in writing the end of discounts on medical and education expenses in the Personal Income Tax (IRPF). The measure would result in savings of R$30 billion for the government and would cover part of the expenditure on promePresident Jair Bolsonaro's (PL) campaign campaign. The document, obtained by Estadão, is ten pages long, suggests changes to the law and was prepared by the ministry's tax department team after the first round.

The minister said that he “refutes the allegation that he intends to end deductions” and classified the measure as “completely baseless”, in a note sent to the reporter. “The minister's office stated that it 'does not recognize the validity of the document' to which Estadão had access and that studies are carried out routinely in the department.”

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Guedes I would have told people close to me that the Federal Revenue Service is carrying out studies to increase the exemption range and that this would be the only measure already agreed upon. According to him, studies are commonplace in the department. In the document, technicians predict that, with the end of deductions for medical expenses, savings would be R$24,5 billion for the year. The cut in education would increase revenue by R$5,5 billion.

As promeBolsonaro's campaign benefits, which includes the granting of 13th benefit for female heads of families benefiting from the Brazil aid, carried out one day after voting in the first round of the elections, would have an impact of R$86 billion next year, exceeding the spending ceiling.

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“They said we broke the roof. This is fake news”, says Paulo Guedes

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The Minister of Economy, Paulo Guedes, stated this Wednesday, 28th, during his participation in the Pânico program, that the spending ceiling impeded the government's economic growth. According to him, the statements that the tax rule was disrespected are fake news. “They said we broke the roof. This is fake news. The ceiling was for the government not to grow and we weren’t growing,” he stated. According to Guedes, the spending ceiling was an unfinished work, a house without walls, with the floor compressing the ceiling with the increase in expenses.

Guedes' team also recommended changing the way in which retirements and pensions that are higher than the minimum wage (R$ 1.212) are corrected and the unification of salary levels health quality education for states and municipalities.

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