Bolsonaro government almost quadrupled tax benefits and failed to comply with fiscal responsibility in 2022, says TCU

[ad_1]

Conclusions from the Court of Auditors will be sent to the Attorney General’s Office. For the TCU, the government disrespected rules such as the Fiscal Responsibility Law. The Federal Court of Auditors (TCU) concluded this Wednesday (13) that some of the benefits granted by the Bolsonaro government in 2022 did not respect the Fiscal Responsibility Law (LRF) and the Budget Guidelines Law (LDO) of that year. TCU will send conclusions to the PGR. TV Globo/ Reproduction Because of this, the TCU decided to forward the process documents and the decision to the Attorney General’s Office (PGR) so that it can take whatever measures it deems necessary, given “indications of defects in the legislative process”. If the PGR understands that there were irregularities, it will take legal action to hold those responsible accountable. It is up to the Court to decide whether or not to accept the complaint, and only then is a case opened. According to the Court of Auditors, the government renounced revenue of R$202.2 billion for the period from 2022 to 2025 in taxes charged when granting tax benefits in 2022, during the term of former president Jair Bolsonaro (PL). For comparison, the 2021 tax waivers would represent a waiver of R$54 billion from 2021 to 2024. In other words, in relation to 2021, there was a 274% increase in tax waivers. The data appears in a report from the Federal Court of Auditors (TCU), which assessed the compliance of government waivers in 2022. The Federal Court of Auditors evaluated the government’s actions to implement the New Secondary Education Tax waivers In total, the TCU analyzed 35 laws, decrees, provisional measures and ordinances that establish waiver by the federal government in tax collection, of which 25 should comply with legal and constitutional rules. According to the TCU, a portion of these measures came from the National Congress, which persists in “proposing and approving a bill or amendments to the provisional measure, without demonstrating compliance with all the requirements required for granting or expanding the tax benefit”, says the report. The Court’s technical area also highlights “the failure of the Executive Branch to comply with these constitutional and legal requirements when drafting legislation to create or extend tax exemptions during the 2022 financial year”. Read also: Targets of Haddad’s criticism, tax benefits are expected to exceed R$500 billion in 2024, the highest level in 9 years ‘Zero deficit’: understand the government’s difficulties in meeting the goal of closing the hole in public accounts Fiscal responsibility According to the TCU, the measures analyzed did not respect legislation on fiscal responsibility, such as the Transitional Constitutional Provisions Act, the Fiscal Responsibility Law and the Budgetary Guidelines Law. According to the LRF, when the government grants or expands an incentive or benefit that involves loss of tax revenue, the act must be accompanied by an estimate of the budgetary impact. The government must comply with at least one of the following conditions: demonstrate that the waiver was considered in the Budget’s revenue estimate; determine compensation measures for lost revenue. The TCU observed that there was non-compliance with tax rules in 13 of these measures: Creation of the Support Program for Technological Development of the Semiconductor Industry (Decree 11,323/2022, later revoked). 50% discount on the Freight Additional rates for the Renewal of the Merchant Marine (Decree 11,321/2022); Setting the global limit on imports of equipment for scientific research (Ordinance 11,017/2022); Decree that regulates the expansion of Prouni (Decree 11,149/2022); Grants tax and credit benefits to participants in the Renovar Program (Law 14,440/2022); Extension of the income tax deduction for donations to sports projects (Law 14,439/2022); Facilitation of fundraising by agribusiness (Law 14,421/2022); Conditions for calculating PIS/Pasep and COFINS for petrochemical plants and chemical industries (Law 14,374/2022); Extension of deadlines for exemption or suspension of taxes in drawback regimes – that is, customs regime for exports (Law 14,366/2022); Pronampe credit conditions (Law 14,348/2022); Debt Payment Rescheduling Program in Simples Nacional (Complementary Law 193/2022); BR do Mar Program, to encourage coastal navigation (Law 14,301/2022); Tax compensation for radio and TV stations for broadcasting party propaganda (Law 14,291/2022);

[ad_2]

Source link