Chamber approves urgency of PLs to reburden city halls – 04/09/2024 – Market

The plenary of the Chamber of Deputies approved on Tuesday night (9) the urgent request for the bill that deals with Perse, a program that grants tax relief to the events sector.

They also approved the urgency of the payroll tax relief project for certain municipalities.

Urgency speeds up the processing of a matter in the Chamber, since it does not need to be analyzed in the House’s thematic committees and goes to the plenary. Deputies are expected to address the merits of the two proposals next week.

The first application was approved by 299 votes in favor and 110 against; the second, by 275 in favor and 139 against.

On the 27th, the Luiz Inácio Lula da Silva (PT) government formalized the two bills, which, initially, had been dealt with through a provisional measure (MP) issued by the Executive. The two texts were authored by the government leader in the Chamber, José Guimarães (PT-CE), and the PT leader in the House, Odair Cunha (PT-MG).

In Perse’s leanest proposal, the government proposed cutting to 12 activities on the list of CNAEs (National Classification of Economic Activities) authorized to have access to the program.

The proposal also provides for a “ladder” for the gradual reduction of the tax benefit: the so-called “discount” on exempt taxes would fall to 45% this year; 40% in 2025; 25% in 2026.

In 2027, the tax benefit ceases to be valid with the complete repayment of federal taxes (Income Tax; Social Contribution on Net Profit and PIS/Cofins).

The proposal to remodel the program came after an agreement signed between the president of the House, Arthur Lira (PP-AL), and the team of the Minister of Finance, Fernando Haddad. Haddad had to back down from his attempt to end Perse, included in the MP that increased the payroll of companies in 17 sectors.

Now, deputy Renata Abreu (Podemos-SP) will be the rapporteur of the text. The project also removes companies taxed under the real profit system (with revenues exceeding R$78 million per year) — this point faces strong resistance among representatives of the sectors benefiting from the program.

Deputies also approved on Tuesday night the urgency request for the project that proposes a new payroll tax relief model with the aim of covering smaller municipalities.

The criteria for accessing the tax benefit is that the municipality has up to 50 thousand inhabitants and RCL (net current income) per capita of up to R$3,895. In 2024, they would have a rate set at 14%.

The project foresees a gradual increase in the contribution rate that city halls pay to the INSS applied to civil servants’ payrolls. The level starts at 14%, reaching 18% in 2026. The contribution rate, before Congress approved the exemption, was 20%.

The counterparts for accessing the benefit are for the municipality to be in compliance or to adhere to a debt consolidation plan with future installments, a type of Refis.