government admits overturning veto on payroll tax relief

The government leader in Congress, senator Randolfe Rodrigues (no party-AP), admitted this Thursday (14) that the full veto of President Luiz Inácio Lula da Silva (PT) will be overturned in the session scheduled for the end of the morning.

Deputies and senators will meet in a joint session to discuss the president’s 60 vetoes on bills approved by both houses, such as the extension of payroll tax relief until the end of 2027, time frame, fiscal framework, among others.

“It’s a recorded defeat. It is something that is in the account, we are aware, we know the position, My role as leader in Congress is to sustain presidential vetoes, and I will do so being aware that there is an opposing majority”, said Randolfe after a meeting of leaders shortly before of the beginning of the Congress session.

Behind-the-scenes information indicates that the government released base leaders and parliamentarians to vote as they wish in relation to the vetoes on tax relief, recognizing that it would not have the strength to maintain the president’s decision. Since the beginning of the week, Minister Alexandre Padilha (Institutional Relations) had been trying to negotiate with congressmen to await the presentation of a new proposal for taxation of the 17 sectors that employ the most in the economy.

The president of the Senate and Congress, Rodrigo Pacheco (PSD-MG), stated on Wednesday night (13) that “the tendency is to overturn the veto and discuss the alternative with tax relief [em vigor]”. The statement was given after a meeting with Randolfe.

The extension of the payroll tax exemption until the end of 2027 was approved by a large majority of the Senate in October, however Lula vetoed the proposal in its entirety. The attitude generated an immediate reaction in Congress and in the productive sector, which joined forces in a campaign among congressmen to overturn the veto.

Not even the trade unions that traditionally support Lula approved the veto, and stated that “millions of jobs” would be put at risk, in addition to “stimulating the precariousness of the labor market”.