Jointly signed document suggests new date to be August 30; initial deadline granted by the Supreme Court ends on July 19
A AGU (Attorney General’s Office) and the Attorney General’s Office of the Senate requested so that the STF (Supreme Federal Court) extends the deadline for the government and Congress to reach an agreement to compensate for the payroll tax relief for 17 sectors of the economy and municipalities with up to 156 thousand inhabitants. The suggested date is August 30th.
Congress has until July, 19 to approve the project that is being processed in the Senate with an agreement, if there is no extension. Earlier, however, the president Rodrigo Pacheco (PSD-MG) postponed the vote and confirmed the request to give more time to the issue. Furthermore, even if it were to advance in the Upper House, the resolution would be postponed until August, since the Chamber of Deputies has already ended its sessions. Here is the full (PDF – 493 kB).
According to the document, the project was scheduled to be considered in plenary on July 10, but was not held because negotiations with the Ministry of Finance regarding compensation measures were not concluded.
The bodies also claimed that the approach of the Congressional recess, which begins on July 18, could impact the “capacity for deliberation” About the subject, “clearly demonstrating the urgency and need to grant additional time to build consensus”.
Since the Judiciary is in recess, the responsibility for responding to the demand falls to the Supreme Court’s on-call judge, given the urgency of the matter. Justice Edson Fachin He was in charge of the Court’s duty until this Tuesday (16th July), and the person who will take over immediately afterwards, from 17th to 31st July, is the president of the STF, Minister Roberto Barroso.
COMPENSATION
The agreement for the gradual re-taxation of payroll taxes in the 17 sectors of the economy and municipalities was signed in May between the government and Congress. The benefit is guaranteed in 2024, but the gradual return of the tax will begin in 2025 and continue until 2027.
The imbroglio is the source of resources to compensate for the tax relief. Congress does not accept any more tax increases and has discarded the government’s proposal to increase the CSLL (Social Contribution on Net Income) of banks by 1 pp (percentage point).
On the other hand, Planalto has not shown receptiveness to Congress’ proposals, as it considers the volume of resources that will be collected to be unpredictable.
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