Minister of Finance declares to have presented a “quite consistent” alternative, but did not give details
The Minister of Finance, Fernando Haddad, said this Monday (Feb 5, 2024) that he will talk to Congress leaders about the impact data involving the payroll tax exemption in 17 sectors of the economy. He also said that he presented an alternative “fairly consistent” to the topic, but did not give details.
“Like everything we did last year, we are going to sit down with the leaders and open up the numbers. The important thing at this moment is for Congress to be aware of the numbers in the Budget approved last year”he declared in an interview with journalists in Rio de Janeiro.
Haddad mentioned the Fiscal Responsibility Law and the LDO (Budget Guidelines Law) when saying that “any gesture by Congress towards a sector of the economy must be compensated by measures that balance” public accounts. “We need to make this compatible so that we don’t lose the course that was set at the end of last year”he declared.
On December 28, Haddad announced the MP (provisional measure) 1,202/2023, which deals with the re-encumbrance of payroll in 17 sectors of the economy, bars the reduction of the social security rate from 20% to 8% in municipalities with up to 142.6 thousand inhabitants and also lowers other rules to increase tax collection.
The text was edited on December 29th, but the effects on payroll will only come into force from April 1st, when the measure will expire.
According to the minister, the impact of the extension of payroll tax relief and the measure in favor of municipalities will be R$16 billion. This was a new estimate brought by Haddad on the topic on January 16th.
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