12/29/2023 – 7:04
Sectors affected by the government's decision to revoke the payroll exemption stated, in a joint note released yesterday afternoon, that the provisional measure that should be issued by the government to increase revenue “brings legal uncertainty for companies and workers on the first day of the year 2024” and criticized the way the government acted.
“It is absolutely not reasonable for it (law no. 14784/23, which extends the payroll tax exemption for four years) to be immediately amended or repealed through an MP, contradicting a sovereign decision of Congress, ratified by the two Houses in overturning the presidential veto”, says the text published by sectoral entities.
The associations also stated that the proposals “are not clear and signal important changes that were not discussed with Congress, the business sector or worker representatives”. “These are proposals that should not be imposed on society without prior broad and comprehensive discussion, through MP”.
The president of the Brazilian Footwear Industry Association, Haroldo Ferreira, said that the law enacted by Congress “maintains jobs and competitiveness” for the 17 affected sectors. In a note, the Brazilian Association of the Textile and Clothing Industry (Abit) “recognizes the government's effort to achieve zero deficit, but it could not fail to be concerned about the re-encumbrance, which could impact part of the 1.5 million jobs in the sector”.
The information is from the newspaper The State of S. Paulo.
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