Pacheco allows excerpts from the government’s MP to lose validity and resumes exemption from municipalities’ payroll

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As a result, the MP sent by the government, who had already lost effectiveness in areas that were resisted by Congress, became quite dehydrated. The president of the Senate, Rodrigo Pacheco (PSD-MG), allowed this Monday (1st) sections of a provisional government measure to lose validity. As a consequence of this, tax relief on municipal payrolls was resumed. This section, defended by the Ministry of Finance, predicted that city halls would have to pay a 20% tax on civil servants’ payroll. Percentage above the current 8%, provided for by law. But the MP lost its validity this Monday, 60 days after being published. A provisional measure loses its validity when 60 days have passed and it has not been voted on by either the Chamber or the Senate. The discussions took place in unofficial meetings, and the proposal never made it to Congress. Pacheco, as president of Congress, extended the term of the MP for another 60 days — which is permitted by law. But he did not extend the validity of all sections. He let it “lapse” (a term for losing its validity), for example, the section that reimbursed the municipalities. By allowing the part about municipalities to lapse, Pacheco goes against the government’s wishes. The economic team counted on the collection of taxes from city halls, amounting to around R$10 billion. In a note, Pacheco stated that the mechanism for discussing the reimbursement is via a bill, with greater participation from Congress, and not through a provisional measure. The president of the Senate argued that the MP contradicted points approved by Congress. “We are open to rapid discussion and the best and fairest model for Brazil. But, in fact, an MP cannot revoke a law enacted the previous day, as if it were another round of the legislative process. This guarantees predictability and legal certainty for everyone involved,” said Pacheco. He also let sections that the government had already revoked expire. For example, the point that repaid the payroll of companies in 17 sectors of the economy. The government revoked this section precisely because it had not been well received by Congress. Therefore, whether due to the government’s revocation (made after pressure from Congress), or Pacheco’s action in letting a section lapse, the MP was quite dehydrated.

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