Vetoes by President Luiz Inácio Lula da Silva (PT) were overturned on December 14; measures were published in the Official Gazette
The president of Congress, Rodrigo Pacheco (PSD-MG), enacted this Thursday (Dec 28, 2023) the time frame and renewal of the law that exempts the payroll of 17 sectors of the economy until 2027. The measures were published in the Official Diary of the Union.
On December 14, deputies and senators overturned some of the president's vetoes Luiz Inácio Lula da Silva (PT) about the laws. The overturn of the veto on the time frame was articulated by the agribusiness bench. The lifting of the veto on exemption was articulated by different political groups, including government members.
The government had already priced the overturn of the veto on the time frame. The thesis defended by land owners establishes that indigenous people would only have the right to lands that were in their possession on October 5, 1988, the date of promulgation of the Federal Constitution, or that were under legal dispute at that time.
The proposal was approved in Congress and the president vetoed the text in October. Previously, on September 21, the STF (Supreme Federal Court) had already determined, by 9 votes to 2, that the thesis was unconstitutional. A week later, resumed analysis of the case and defined the new thesisblocking the time frame.
There was government agreement to to maintain some sections were vetoed, including the one that prohibited the cultivation of transgenics in areas of conservation units, but allowed production in environmental protection areas.
Lula's vetoes were also confirmed on the sections that dealt with the conditions for contact with isolated peoples and the possibility of reviewing demarcations for the resumption of land by the Union to allocate them to the National Agrarian Reform Program. The maintenance of vetoes on these stretches was negotiated with the ruralist bench.
Among the sections rejected by congressmen, Lula had also vetoed a device that allowed the installation of bases, units and military posts on indigenous lands, regardless of consultation with the communities involved or the competent federal indigenous body, such as Funai (Fundação Nacional do Índio) .
LEAF EXEMPTION
On the same day that it overturned the veto on the time frame, Congress also defeated the Minister of Finance, Fernando Haddad. With the lifting of the veto on exemption, the benefit for 17 sectors of the economy will have an impact on public coffers of at least R$18.4 billion in 2024placing another stone on the path to achieving zero deficit next year.
The extension of the exemption was vetoed by Lula in November. The government is studying the possibility of judicializing the extension in the STF (Supreme Federal Court). Haddad must present an alternative measure for the benefit to be replaced.
In force since 2012, the exemption represents a loss in revenue R$ 139 billion for the Union since it came into force, according to data from the Federal Revenue Service. For 2023, the estimated impact is R$9.4 billion.
This year, the tax relief project included the reduction of municipal social security ratesbut the exemption will only be valid for cities with up to 142 thousand inhabitantswhich will have taxation reduced from 20% to 8% of civil servants' salaries.
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