Chamber includes urgent matters on plenary agenda for tax relief and debt relief for States

The Chamber of Deputies includes on the plenary voting agenda for this Monday, the 9th, urgent requests for the bill that provides compensation for the payroll tax relief and for the proposal to renegotiate the states’ debts. The two texts have already passed the Senate and await the approval of the deputies.

If the urgency is approved, the projects will be able to skip the committee analysis stage and be voted on directly in the plenary. This week, the Chamber will carry out the third and final concentrated voting effort during the municipal election period.

The Speaker of the House, Arthur Lira (PP-AL), allowed sessions to be held remotely, meaning that there is no need to be present in Brasília. Deputies can now vote using an app.

On August 20, the Senate approved the tax relief bill, which extends the benefit to 17 sectors of the economy and small and medium-sized municipalities. The proposal provides for a gradual re-taxation for companies and municipalities until 2027.

The tax relief bill also includes compensatory measures that will make up for the loss of R$25 billion to the federal government’s coffers this year. These include: updating income tax assets; repatriation of assets held abroad; renegotiation of fines applied by regulatory agencies; thorough examination of the INSS and social programs; use of forgotten judicial deposits; use of forgotten resources; and the program to register tax benefits granted by the government.

The proposal to renegotiate the states’ debts, in turn, passed the Senate on August 14. The text was authored by the president of the House, Rodrigo Pacheco (PSD-MG).

The proposal’s main objective is to allow the country’s most indebted states to renegotiate their debts in a sustainable manner. In exchange for reducing the debt index, the government proposed that investments be made in areas considered fundamental, with a priority being technical secondary education.

The States will also have to transfer a percentage of what would be paid as interest on the debt to an equalization fund to be divided among all States, including the least indebted.