Padilha promises to pay R$7.6 billion in “PIX amendments” to approve tax measures

Minister Alexandre Padilha, of Institutional Relations, promised parliamentarians that he will free up the ministries’ coffers to pay R$7.6 billion in special transfers – the so-called “PIX amendments” – to approve the government’s economic projects in Congress until the end of the year.

The statement, given on Monday night (11) after a meeting with party leaders, comes at a decisive moment for the government, which has to approve measures this week and next to increase tax collection and try to reach the goal of zero the loss of public accounts next year.

“We will not allow default. Our guidance for ministries is to speed up executions. This year there was around R$7 billion reais, we committed 100% and we will pay. We have already paid 75% and will, probably, by next week, pay 100% of the special transfer amendments that were committed”, said Padilha.

In addition to paying for the amendments, parliamentarians are also putting pressure on the government to negotiate the analysis of vetoes by President Luiz Inácio Lula da Silva (PT) on important projects for Congress, such as the extension of the payroll tax exemption until 2027, the time frame for demarcation of indigenous lands, among others. The vetoes must be analyzed in the Congress session this Thursday (13).

In addition to the vetoes, congressmen ask the government to pay for amendments pending since 2019. Padilha mentioned a decree by the vice president, Geraldo Alckmin, which extended these amendments, highlighting the need for a careful analysis of the indicated projects:

“The remaining payments since 2019 continue to be analyzed for payment, they are paid as the works and services take place, they undergo a rigorous technical analysis by the ministries. What is authorized, we will continue to pass. We are once again showing the government’s willingness to execute what was left by the previous government, as long as the works are technically analyzed”, added the minister.

Among the main projects that the government needs to advance in Congress are the taxation of companies benefiting from ICMS and online betting — the so-called “bets”. The forecast is to raise R$47 billion, but the amount may be reduced after changes made by congressmen to the original projects.

The provisional measure dealing with the ICMS subsidy is seen as a potential source of R$35 billion for public coffers. Furthermore, the same measure includes changes in the payment of Interest on Equity (JCP), initially estimated at R$ 10 billion, but the amount of which does not yet have a new collection projection.

As for online betting, the initial expectation of R$2 billion in 2024 is subject to change as a result of modifications proposed by senators.