A mercy shot in small businesses – ISTOÉ MONEY

WASHING HANDS Bolsonaro misses the target by denying installments of debts contracted in the pandemic by small entrepreneurs and outsources the trouble in an election year. (Credit: Helvio Romero)

Micro and small enterprises (MSEs), the most endangered during the pandemic, are at risk once again. By vetoing last week the debt installment program, the Refis, of entrepreneurs registered in Simples Nacional or as individual microentrepreneurs (MEI), President Jair Bolsonaro threw to Congress the responsibility of overturning the veto and guaranteeing relief for small businesses. . But Congress only returns from recess in February, which adds to the agony and uncertainty in the economy. In total, 1.8 million companies are registered in the active debt of the Union for Simples debts, of which 160 thousand are MEI. The total value of Simples Nacional debts registered in active debt is R$ 137.2 billion.

Bolsonaro tried, on Monday (10), to explain his veto. The president stated that he did not veto it out of “evil” and that he could respond in court if sanctioned. Bolsonaro advocated that Congress override its own veto, just as it did when it vetoed and asked his allies in Parliament to amnesty the R$1.4 billion debts of evangelical churches with the tax authorities last year. “My veto on the renegotiation was not my malice. I had two problems, the source of funds to compensate for that, otherwise I answer in front of article 85 of the Constitution, and also the possibility of being judged electorally”, said Bolsonaro, in an interview with Jovem Pan, admitting his maneuver. “I ordered the ministry to solve this problem. I’m sure Parliament will override the veto.”

In reaction to the noise caused by the situation, an ordinance and a notice were issued by the Attorney General’s Office of the National Treasury (PGFN), which are less advantageous than the Refis approved by Congress and which are only valid for those who have debts registered in the Union’s active debt. The measure, therefore, does not apply to those who have debts only within the scope of the Federal Revenue Service. The two measures allow entrepreneurs opting for Simples Nacional and individual microentrepreneurs (MEI) to settle their debts with a down payment of 1% of the value. “The veto reveals that the President of the Republic is not committed to employment and the preservation of activities”, said the president of the Micro and Small Industry Union of the State of São Paulo (Simpi), Joseph Couri. “We are living in a moment of rising prices, pressure on costs for companies and loss of consumer power by the population,” he said.

According to the calculations of the Brazilian Micro and Small Business Support Service of São Paulo (Sebrae), the program would allow the renegotiation of BRL 50 billion in debts of micro and small businesses that fall under the Simples and MEI regimes. “We are very sorry for the veto because it comes at a still difficult time for small businesses. Many have not yet recovered from the impact of the pandemic,” said the entity’s superintendent director, Wilson Poit.

“We are desperate because we had to close during the pandemic in the name of the collective good. Now, we are outraged.” Paulo Solmucci president of Abrasel.

The presidential veto of the new debt refinancing program would be a mercy shot to sectors weakened by the pandemic, such as bars and restaurants. The Brazilian Association of Bars and Restaurants (Abrasel) said that a program that promised to give breath to millions of micro and small companies to renegotiate their debts with Simples ended up being a fiasco. Paulo Solmucci, president of the association, told Folha de S.Paulo that the impasse reveals the government’s “incompetence” in negotiations with Congress. “We are desperate because we had to close during the pandemic in the name of the collective good. Now, we are outraged.”

According to Abrasel, 47% of companies in the sector were in arrears with Simples installments, and 85% of establishments were at risk of being disqualified from the tax regime. The study also found that the vast majority (96%) were interested in the debt refinancing program. According to the survey, 60% said they would definitely adhere to the measure and another 36% said they evaluated the conditions.

“The veto reveals that the President of the Republic is not committed to employment and the preservation of activities” Joseph Couri president of Simpi.

ALTERNATIVE To try to contain the damage, the government does not rule out a Provisional Measure with an alternative installment program. The economic team, led by Minister Paulo Guedes, is trying to discourage the president from taking the pen, but the alternative is seen as necessary in an election year if Congress does not override the veto.

The project approved by Congress allowed the debt to be paid in up to 15 years, with discounts proportional to the drop in revenue during the Covid-19 pandemic, after the payment of a down payment. The down payment would be between 1% and 12.5% ​​of the debt value. The discounts on this amount would be granted according to the drop in revenue.