US price index advances 5.4% in June, the biggest annual jump in 13 years; in the domestic scenario, the reporter increases the exemption from income tax for companies and removes taxation from real estate funds
The main indicators of financial market Brazilian inflation closed on a high this Tuesday, 13th, with the above-expected advance of inflation in the United States. On the domestic agenda, attention turned to changes in the text of the tax reform in Congress. O dollar gained strength moments before the end of negotiations and closed with a high of 0.13%, quoted at R$ 5.181. The North American currency opened on a high and reached R$ 5.233 at the maximum. The signal reversed in the early afternoon after the disclosure of new proposals for the Income Tax and reached a minimum of R$ 5,149. The currency closed the day before with a retreat of 1.25%, quoted at R$ 5.174. Ignoring the international bad mood, the Ibovespa, a reference on the Brazilian Stock Exchange, closed with a high of 0.45%, at 128,167 points. The trading session this Monday, 12, ended with an advance of 1.73%, at 127,593 points.
Markets around the world reacted to the 5.4% increase in consumer price index (CPI) inflation in June, compared to the same month in 2020, according to data from the US Department of Labor . Analysts estimated a 5% increase. The jump is the biggest since August 2008. Removing the influence of the variation of food and energy, the CPI increased 4.5%, the biggest annual increase since September 1991. Estimates pointed to a growth of 3.8%. “This sharp rise in inflation comes from the economic reopening of the post pandemic shock. June 2020 was a very serious moment of the coronavirus crisis when prices were lower, even to try to boost economic activity. And throughout 2021, with the reopening of the economy, prices were rising. This characterized an inflationary shock”, says Pietra Guerra, stock specialist at Clear Corretora.
On the domestic agenda, the highlight was the changes in the tax reform proposed by the rapporteur, deputy Celso Sabino (PSDB-PA). The congressman indicated to raise the cut of the Income Tax for Legal Entities in 12.5% until 2023, reducing the rate from the current 15% to 2.5%. In the original project, the Ministry of Economy proposed two consecutive cuts of 2.5 percentage points in 2022 and 2023. The text maintains the additional 10% charge for companies that earn more than R$ 20,000 per month and does not change the additional 9% tax on Social Contribution on the Net Income (CSLL). In the current system, the accumulated taxation reaches 34% for large companies. With the change, taxation would drop to 12.5% of Income tax, plus 9% of CSLL, totaling 21.5%. For companies with less than R$20,000 in monthly income, the measure will reduce the tax from 24% to 11.5% in 2023.
The report presented maintains the 20% tax on profits and dividends, as proposed by the economic team. The measure was the target of criticism from economists and businessmen, who claim that it will impact the increase in taxes, according to the original project for a smaller reduction in the IRPJ. Members of the economic team itself pointed out errors in taxation and even proposed that the rate should be 15%. The deputy also removed the 15% tax on Real Estate Investment Funds (FIIs) proposed by the federal government. The report maintained the expansion of the base of exemption from Income Tax for Individuals (IRPF) for salaries up to R$ 2.5 thousand, as the Ministry of Economy had indicated. The rate will be 7.5% for earnings up to R$ 3.2 thousand, 15% for R$ 4.25 thousand, 22.5% for R$ 5.3 thousand and 27.5% for salaries above R$ 5.3 thousand.