Pacheco says the government agrees to maintain exemption and discuss changes to the project

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President of the Senate, Rodrigo Pacheco, makes a statement in the Blue Room. Reproduction/ TV Globo The president of the Senate, Rodrigo Pacheco (PSD-MG), stated this Wednesday (21) that the government agreed to maintain the payroll tax exemption for the 17 sectors that generate the most jobs. Any changes to this rule, according to Pacheco, will be discussed through a bill that will still be sent to parliament by the government. Congress approved in October last year that the exemption will be valid until 2027. Then, in December, the Presidency of the Republic revoked the text through a provisional measure (MP). “The payroll tax exemption for the 17 sectors is maintained, that is how it will be and any changes will then be matured by bill and not by provisional measure. The political construction is done. The government has already agreed with this premise. We have adjusted it. The government can propose changes, but will do so by bill without immediate effectiveness”, said Pacheco. The MP issued by the government reinstates the payroll of 17 sectors of the economy, limits the use of tax credits and reviews the Emergency Program for the Resumption of the Events Sector (Perse). This Wednesday, Pacheco stated that charging companies a higher tax rate again would “offend” the decision taken by Congress. “So, a re-encumbrance of these sectors would be, firstly, something that would offend what the Legislature decided at the end of last year and, secondly, something that is harmful to Brazil’s economy at the moment,” he said. 17 sectors The law approved by Congress allows companies in 17 sectors to replace the social security contribution, of 20% on employees’ salaries, with a rate on the enterprise’s gross revenue, which varies from 1% to 4.5%, according with the sector and service provided. This possibility, according to the approved proposal, will be valid until December 31, 2027. According to the Movimento Desonera Brasil, which brings together representatives of the benefiting sectors, the issue impacts 8.9 million direct formal jobs, in addition to millions of other jobs derived from production network of these companies. Among the 17 categories covered by the project are: industry (leather, footwear, clothing, textiles, animal protein, machinery and equipment); services (IT & ICT, call center, communication); transport (freight road, urban passenger road and metro rail); construction (civil and heavy construction). The substitution allows, in practice, companies to pay a lower amount of tax and, based on the relief in their bills, be able to hire more employees. – This report is being updated

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