Payroll exemption: Pacheco argues that Congress overturns Lula’s veto and, only then, discusses possible government alternatives

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Lula vetoed a project that extends exemptions for 17 labor-intensive sectors until 2027; Congress could overturn the veto this Thursday. The Treasury has not yet announced an alternative. The president of Congress, senator Rodrigo Pacheco (PSD-MG), defended in an interview this Thursday (14) that parliamentarians overturn President Luiz Inácio Lula da Silva’s (PT) veto on the project on payroll tax relief. The project approved by Congress foresees that the rule (understand below), currently valid until December 31, will be extended until the end of 2027. Deputies and senators must analyze Lula’s veto this Thursday. According to Pacheco, parliament can even debate alternative government proposals to alleviate the tax burden on the 17 labor-intensive sectors – but only after extending the exemption. “In my personal opinion as a parliamentarian from Minas Gerais, I consider it appropriate to extend the payroll tax exemption. Does this mean that there is also intransigence on our part in listening to the Ministry of Finance and the federal government in relation to suggestions for improvements? No “, he declared. “But I think that the suggestions from the Ministry of Finance and the federal government for this issue of the payroll and its exemption should be carried out with the exemption extended. In other words: the suggestion is to overturn the veto in relation to the exemption of the payroll – allow it to remain in Brazil – and that proposals may eventually come to improve this exemption institute”, he continued. Act in Brasília defends the overturn of President Lula’s veto on the project that extends the payroll tax exemption Exemption The current payroll tax exemption will expire in December this year. According to the proposal approved by Congress, the measure would be extended for another four years — until December 31, 2027. Businesspeople in the sectors affected by Lula’s veto argue that maintaining the veto could lead to a reduction in the number of employees. The measure impacts companies that directly hire 8.9 million people, in addition to millions of other indirect jobs. According to the text, the following sectors can change the taxation regime: 🏭industrial: leather, footwear, clothing, textiles, animal protein, machinery and equipment ☎️services: information technology, information and communication technology, call center and communication 🚌transport : freight road, urban passenger road and metro rail 🏗️construction: civil and heavy construction

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