Pacheco defends payroll tax relief; proposal will be voted on next week

The president of the Senate, Rodrigo Pacheco (PSD-MG), defended this Friday (20) the extension of the payroll tax exemption. Bill 334/2023 intends to extend the benefit to 17 sectors of the economy until 2027. According to current rules, the benefit ends in December this year. The vote of the rapporteur, senator Angelo Coronel (PSD-BA), is to reject the changes made by the Chamber of Deputies when approving the proposal. The expectation is that the Economic Affairs Committee (CAE) will vote on the text next Tuesday (24).

“The Senate presidency has a favorable position on the project. We consider that it is important to exempt these 17 sectors that have high employability. These are sectors with a high employment rate and whose payroll represents a lot for the costs of these companies”, said Pacheco in a press conference with journalists.

The vote in the CAE is final in nature. Therefore, if approved, the project will not need to be analyzed by the plenary, unless the senators present a request or modifications to the proposal. Payroll relief is a mechanism that allows companies in benefiting sectors to pay rates of 1% to 4.5% on gross revenue, instead of 20% on payroll. This permission was introduced 12 years ago for some areas and for at least ten years it covers all 17 sectors currently included, informed the Senate Agency.

Pacheco stated that the exemption of these 17 sectors is important, as they have high employability. “These are sectors whose payroll represents a lot for the costs of these companies and it is natural that there will be a tax relief program extended for a few more years, which is the project being presented. So I believe that next week we will have this resolved and that it can be sanctioned by the President of the Republic. Also, quickly, if there is an appeal or any modification that requires consideration by the plenary, we will vote in the plenary as soon as possible”, said the president of the Senate.