12/09/2024 – 11:35
BRASILIA (Reuters) – The Chamber of Deputies concluded voting on Thursday on a bill that establishes a transition to end payroll tax relief, with compensatory measures for the benefit.
The approved text, which is now awaiting presidential sanction, included a drafting amendment to define that the collection by the National Treasury of resources forgotten in financial institutions will be counted as primary government revenue, a point that was the focus of disagreement with the Central Bank.
The project proposes a three-year transition to end payroll tax relief for 17 sectors of the economy and to charge the full INSS tax rate in municipalities with up to 156,000 inhabitants.
The text contains several measures that seek resources to offset the benefit during its validity period, such as updating the value of properties with lower capital gains tax, use of judicial deposits and repatriation of amounts abroad.
In one of the measures, which foresees the transfer to the Union’s coffers of resources forgotten in financial institutions, the BC presented a technical note this week in which it stated that the initiative cannot be classified as primary revenue, which would mark a setback in the government’s efforts to use these balances in order to meet this year’s fiscal target.
Following questions from the monetary authority, the government presented a drafting amendment to the project to provide that “the remaining unclaimed balances with depository institutions will be transferred to the Union and will be appropriated by the National Treasury as primary budget revenue and considered for the purposes of verifying compliance with the primary result target”.
The amendment was approved by 231 votes to 54, despite protests from the opposition, which claimed that this adjustment changes the merits of the matter, which would require a new analysis of the text by the Senate. The questions were not accepted in the session.
The government expects that this measure alone will increase the 2024 accounts by 8 billion reais.
In an earlier interview with the program “Bom dia, Ministro”, on CanalGov, the Minister of Finance, Fernando Haddad, said that the wording of the project would resolve the BC’s questions.
For him, the approved measures should allow for the full offsetting of the fiscal impact of the benefit in 2024.
(By Bernardo Caram)
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