Entities criticize MP from the Lula government who reinstates the payroll

Several entities criticized this Friday (29) the provisional measure presented by the Lula government that gradually reburdens the payroll of 17 sectors of the economy. The proposal was seen as an affront to the decision of Congress, which approved the extension of the exemption until 2027. The affected sectors employ more than 9 million people and consider that the MP will bring “legal uncertainty” to companies and workers.

The Federation of Industries of the State of São Paulo (Fiesp) classified the government’s determination as an “error”. For the entity, the MP harms the economy, as well as tax revenue. “Issuing an MP reforming a decision promulgated by Congress, and without the prior dialogue promised by the Ministry of Finance with the productive sectors, is a mistake. This path to seek balance in public accounts is absolutely inappropriate, both in terms of form and disrespect for legislative autonomy “, says the official statement from Fiesp.

The Federation of Industries of the State of Paraná (Fiep) highlighted that if the measure is not “promptly faced by the National Congress, it will generate legal uncertainty and judicialization, since it is clearly an undue appropriation by the State”. Along these lines, the Movimento Desonera Brasil, which represents the 17 sectors that will be affected by the change in tax exemption, asked the president of the Senate, Rodrigo Pacheco (PSD-MG), to return the MP to the government. If the provisional measure is returned, it will lose its effectiveness.

“Given the high increase in the tax burden on employment in all sectors covered, it is likely that companies will be forced to make adjustments to their staff and investments, which could lead to mass layoffs in the first quarter of 2023,” he stated the group in a letter sent to Pacheco.

This Thursday (28), the Movimento Desonera Brasil criticized the measure and highlighted that any change to the rule should be discussed via bill and not imposed by an MP. In addition to the letter, the group sent the president of Congress this Friday (29) a technical note to support the request to return the MP to the government.

The Federation of Industries of Rio de Janeiro (Firjan) warned that the “re-encumbrance, albeit gradual, of the payroll by Provisional Measure (MP) goes against the overturn of the veto imposed by the National Congress and puts thousands of jobs at risk” .

MP 1,202/2023 published by the government also provides for the review of the Emergency Program for the Resumption of the Events Sector (Perse) and imposes a limit on the use of tax credits recognized in court in compensation. The Minister of Finance, Fernando Haddad, announced the package of measures to increase revenue in an attempt to reach the zero deficit target for 2024.

“The announced measure is unacceptable. There is no legal or logical justification for limiting the use of amounts that were unduly collected from public coffers. It is regrettable that, in order to achieve the goal of closing the public account deficit, once again the government burdens the productive sector and does not direct the focus of meeting the goal on reducing and improving the efficiency of public spending. Such measures harm the competitiveness of national companies and put thousands of jobs at risk”, highlighted Firjan, in a note.

Mayors will press for the overthrow of the MP

The provisional measure also reduces the contribution rate of Municipalities to the General Social Security Regime (RGPS) to 8%. For the National Confederation of Municipalities (CNM), the new rule “takes away an important achievement for local entities, which would represent savings of R$ 11 billion per year for municipal budgets if it were fully applied”.

“The decision taken by President Lula is criticized by the movement for not presenting immediate alternatives to the Municipalities, as it did in relation to the 17 productive sectors that were also covered by the Law”, said the CNM, in a note. The entity’s president, Paulo Ziulkoski, called on all mayors to “press for a solution”.

“We, as representatives of the Municipalities, always present the problems that burden municipal public accounts, especially the Municipalities in the Northeast in this social security issue. President Lula’s decision reinforces the financial crisis, which is also caused by the federal programs that are created and the responsibilities that the government passes on to the Municipalities. The crisis is structural. It’s not from the city hall, it’s from the Brazilian citizen, who suffers from all the disarray in recent times due to the governments’ mistaken policies”, said Ziulkoski.

Parliamentarians ask Pacheco to return MP to the government

The Parliamentary Entrepreneurship Front (FPE) asked Pacheco to return the provisional measure to the government. The group, made up of 205 deputies and 46 senators, argued that the initiative goes against the decision of the Legislature, which extended the exemption until 2027. The president of the FPE, deputy Joaquim Passarinho (PL-PA), stated in the letter that the MP of government is an “affront” to Congress.

The deputy also said that he will meet with the coalition of Parliamentary Fronts to coordinate the MP’s overthrow. “This matter was voted on twice this year in the House. There was a veto. The veto was overturned in both Houses by a large majority, showing the legislative will that represents the population of this country”, he pointed out.

The president of the Senate stated that he will only decide on a possible return of the proposal after meeting with party leaders in the coming days. “I will analyze the content of the MP with the assistance of the Federal Senate’s legislative consultancy. In addition to the strangeness about the deconstitution of the recent Congress decision on the topic, there is a need for technical analysis on the constitutionality aspects of the MP”, said the senator on the social network X.