After the return of city hall exemptions, Haddad repeats appeal for a ‘pact’ between Powers to achieve goals

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This Monday, Pacheco, president of the Senate, declared the loss of validity of sections of the MP published by the government to increase revenue. For Finance, expenses must be compensated. The Minister of Finance, Fernando Haddad, in an image from February 29, 2024, during the G20 meeting in São Paulo Roberto Casimiro/Fotoarena/Estadão Conteúdo The Minister of Finance, Fernando Haddad, once again defended this Tuesday (2) the creation of a pact between the Three Powers (Executive, Legislative and Judiciary) to achieve fiscal goals. Haddad made the statement after sections of a provisional measure issued by the government to increase revenue lost their validity, at the request of the National Congress (read more details here). For this year, the objective is to eliminate the deficit in the government’s accounts, but the economic team has already admitted that the result will be a deficit. “The Executive is a power, but today the other two powers have a lot of protagonism when it comes to holding this meeting of accounts”, Haddad declared to journalists. According to him, the federal government sets the target for public accounts and forwards laws that will give consistency to this target, in addition to dialoguing with the Judiciary about the expected trials. “And the work we are doing with Congress is to convince parliamentarians that we need to find a source of financing for the expenses created,” he added. President of the Senate allows sections of the MP to lapse and tax exemption for municipalities is resumed Tax exemption for municipalities’ payroll This Monday (1st), the president of the Senate, Rodrigo Pacheco (PSD-MG), announced that sections of a provisional government measure were losing its validity. As a result, the exemption from municipal payrolls was resumed. The section of the MP that has lost its validity, defended by the Ministry of Finance, provided that city halls would have to pay a 20% tax on civil servants’ payroll. Percentage above the current 8%, provided for by law The resumption of tax relief was not included in this year’s budget, therefore, it will have to be compensated in pursuit of the targets set for public accounts Asked if the president of the Federal Senate, Rodrigo Pacheco, spoke with him before announcing the decision, Haddad replied no. “For me, no. He talked to Minister Padilha. Minister Padilha called me, but I hadn’t talked about it with him,” said Haddad. Bill The Minister of Finance recalled that there is a bill in the National Congress dealing with the reimbursement of municipal payrolls – in line with what had been proposed by the federal government through the Provisional Measure. “There is already a bill being processed in the Chamber, correcting the project that was approved last year, limiting it to something that can be included within the 2024 budget. Parliamentarians are seeing an understanding that the project approved in the year past actually burdens the budget by more than R$10 billion”, he stated. Haddad recalled that other parts of the provisional measure also lost their validity, such as the re-encumbrance of the 17 sectors of the economy, as well as Perse — a program for the events sector. “We have to take stock of everything that will be approved now, because Perse is a problem, payroll tax relief is a problem and the issue of municipalities is another problem”, added the minister.

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