Novo sues the Supreme Court against the MP for reimbursing the payroll issued by the Lula government

The national directory of the Novo party sued the Federal Supreme Court (STF) this Tuesday (9) to try to cancel the effects of the provisional measure (MP) that gradually reinstates the payroll of 17 sectors of the economy. The party filed a Direct Constitutionality Action (ADI). At the end of last year, the Lula government published MP 1202/2023 with measures to increase revenue.

The president of Novo, Eduardo Ribeiro, stated that the initiative violates the principle of separation between Powers. On December 14, Congress overturned President Luiz Inácio Lula da Silva’s (PT) veto and validated the bill that extended the exemption until 2027. “This MP is completely flawed and cannot come into force. Congress has already analyzed and made a clear decision on the issue, whether it is agreed or not. Lula cannot govern by decree and impose his will against the Legislature as he sees fit,” said Ribeiro, in a statement.

The affected sectors employ more than 9 million people and consider that the MP will bring “legal uncertainty” to companies and workers. At ADI, Novo argued that a new proposal after overturning the veto is received as an attempt to impose an agenda. The party asked the Court to declare the MP unconstitutional.

Parliamentarians and affected sectors asked the president of Congress, senator Rodrigo Pacheco (PSD-MG), to return the proposal to the government. If the provisional measure is returned, it will lose its effectiveness. Pacheco had a meeting this morning with party leaders to discuss the issue, but stated that he will only decide on the possible return of the matter after meeting with the Minister of Finance, Fernando Haddad.

A People’s Gazetteas a communications company, is among the sectors benefiting from the extension of the payroll tax exemption.