Pacheco says that the veto on the exemption will be voted on this Thursday and sees a tendency for it to be overturned – 12/13/2023 – Market

The president of the Senate, Rodrigo Pacheco (PSD-MG), stated that Congress will decide this Thursday (14) in plenary whether to maintain the veto of President Luiz Inácio Lula da Silva (PT) on the proposal that extends the exemption from the payroll of 17 sectors, recently approved by parliamentarians.

Despite the appeals of Minister Fernando Haddad (Finance), the government must be defeated.

According to Pacheco, the tendency is to overturn the presidential veto now and discuss the alternative to be formulated by Haddad later.

The minister advocated for congressmen to postpone the analysis and said that it was on the table to gradually reburden at least part of the sectors currently benefiting, although so far he has not presented the initiative.

“The tendency is to overturn the veto and discuss the alternative with tax relief [em vigor]”, Pacheco told Sheet on the night of this Wednesday (13).

The president of the Senate made the statement after a brief conversation with the government leader in Congress, Randolfe Rodrigues (no party-AP), who confirmed the veto vote on Thursday and admitted the chance of defeat.

This Wednesday, Haddad said that the government was still studying the alternative to be presented by the government in place of the proposal approved by parliamentarians. He even said that he could have a clearer idea of ​​the possibilities this Thursday — when the vote was expected.

“AGU’s position [Advocacia-Geral da União] is that the measure approved by Congress is unconstitutional. We are looking for a way to avoid judicialization, which would not be good for anyone”, said the minister. “We are trying to build a middle path”, he said.

The payroll exemption applies to 17 sectors of the economy, including communication, which includes Grupo Folha, the company that publishes the Sheet. Footwear, call center, clothing and clothing, civil construction, construction companies and infrastructure works, among others, are also covered.

The benefit would end this year. The text approved by Congress extends the measure until 2027.

The Lula government decided to veto the project entirely, which caused outrage among parliamentarians — the proposal was approved by more than 400 deputies in the Chamber and symbolically in the Senate.

Soon after, Haddad promised that the government would send an alternative suggestion to the tax exemption project, after the end of COP28, the UN Climate Conference (United Nations).

Overturning the veto could have an annual impact of almost R$19 billion on the Union’s coffers.

According to the Ministry of Finance’s accounts, the extension of payroll tax relief would cost R$9.4 billion annually to the public coffers. The reduction in the rates that city halls pay to the INSS (National Social Security Institute), included in the proposal, would drain another R$9 billion.

The government’s decision is defended by economists such as Samuel Pessôa and Marcos Mendes, both columnists for Sheet. For them, the policy did not achieve the desired results of boosting job creation and the economy.

On the other hand, the veto was criticized by entities representing the sectors covered and members of Congress. Parliamentarians openly defend the overturn of Lula’s veto.

For this, the support of an absolute majority in both Houses would be necessary, that is, 257 deputies and 41 senators.

SEE THE 17 SECTORS AFFECTED BY THE RELIEF

• shoes

• call center

• communication

• clothing and clothing

• construction

• leather

• construction companies and infrastructure works

• vehicle and body manufacturing

• machines and equipment

• integrated circuit design

• animal protein

• textile

• information Technology

• communication technology

• metro rail passenger transport

• public road transport

• road freight transport