Minister Fernando Haddad, of Finance, retreated from the proposal to reinstate the payroll of 17 sectors of the economy through a provisional measure and announced on Tuesday night (6) that he will propose a bill jointly with the Senate to review the exemption.
The decision came after a meeting with house leaders at the ministry after Haddad had entered into a crisis with Congress by sending a provisional measure in December proposing the reinstatement, even after parliamentarians had overturned President Luiz Inácio Lula da Silva’s (PT) veto. to extension.
On the other hand, the limitation on the compensation of tax credits above R$10 million and the gradual extinction of the Emergency Program for the Resumption of the Events Sector until 2025 will be discussed in another proposal.
“Our concern is with the result, we need to get the result. A part [da medida provisória] it would be by bill with constitutional urgency and the other parts could be discussed by MP [medida provisória]. This is the understanding of the leaders so that the climate is favorable”, Haddad told journalists, highlighting that he intends to present the points discussed with the senators to the president by Friday (9).
The minister assured that there is a “consensus” with Congress on this point and highlighted that he sees “no impediment to advancing the economic agenda”. He commented on the stance of the President of the Chamber, Arthur Lira (PP-AL), at the opening of the legislative year, stating that when everyone sits down to talk, issues evolve.
Lira gave a very tough speech in the session on Monday (5), in which she made it clear to the government that she will not accept re-discussing proposals that have already been voted on and approved by Congress.
On the other hand, the president of the Senate, Rodrigo Pacheco (PSD-MG), disagreed and stated that the extension of the payroll tax exemption remains in force. “Our decision regarding the exemption will be maintained by both the 17 sectors and the municipalities”, he stated.
“Evidently, the government is not denied the right to re-discuss and, eventually, propose improvements to this institute and any other. But, it should be done through its own instrument, which is the bill, and not the provisional measure that takes effect immediately after its publication”, he said during the afternoon plenary session.
Regarding the costs of the measures, Haddad reinforced that the payroll tax exemption and the Emergency Program for the Resumption of the Events Sector (Perse) will result in a fiscal impact of R$32 billion in 2024. These new numbers differ from the values mentioned previously, ranging from R$18.4 billion to R$25 billion, until the current reduction to R$16 billion.