Opposition may overturn veto on payroll tax relief next week

President Luiz Inácio Lula da Silva’s full veto on payroll tax relief could be overturned in the National Congress next week. This is what opposition party leaders have been saying to the press and on their social networks since the measure was published in an extra edition of the Official Gazette of the Union, in the early hours of Friday (24) – and received with concern by sectors of the productive market.

According to oppositionists, there is a possibility that the issue will be put on the agenda in a joint session of Congress that should take place on Tuesday (28). The work agenda covers another 33 presidential vetoes, but everything indicates that all attention will be focused on Lula’s decision regarding payroll tax relief.

If the veto is maintained, companies in 17 sectors will return to paying taxes after 12 years – which, according to experts, could result in the closure of millions of jobs in the country.

In an interview with CNN, the leader of the opposition in the Senate, Carlos Portinho (PL-RJ) said that there will be great pressure in the coming days for the veto to be analyzed as quickly as possible. “My expectation is that there will be great support for our request for its demolition. This disastrous veto generates more unemployment and more taxes for sectors of the economy. We will pay a dear price for this crunch.”

The opposition’s mobilization to include the discussion on the payroll in next week’s session is based on the negative reaction of entities representing the sectors of the economy harmed by the measure. On Friday, more than ten associations – including Fiesp (Federation of Industries of the State of São Paulo) and Firjan (Federation of Industries of the State of Rio de Janeiro) – issued statements opposing the veto.

Three of the largest Brazilian trade unions also criticized the decision. According to a statement released by Força Sindical, the General Union of Workers and the Central of Brazilian Unions, the government is making a mistake “by throwing the fiscal adjustment at the productive sector and formal employment”.

Behind the scenes of Congress, comments indicate that the president of the Chamber of Deputies, Artur Lira (PP-AL) was taken by surprise by President Lula’s decision. According to people close to Lira, he only expected a partial veto of the proposal, and therefore should support the movement of opposition parties to accelerate the discussion of the issue.