Associations demonstrate against provisional measure 1,227 of 2024 and ask for it to be withdrawn by the government
Thirty entities in the health sector, most of them pharmaceutical companies, publicly demonstrated against the MP (provisional measure) 1,227 of 2024 of the Ministry of Finance. The measure aims to compensate for the tax relief on payroll and municipalities by changing PIS/Cofins tax credits (Social Integration Program/Contribution for Social Security Financing).
In a note, the associations state that PIS/Cofins credits are fully passed on to prices in the healthcare industry. Therefore, they say that change can bring “negative impacts for the population, the economy and the sustainability of the SUS (Unified Health System)”. Here’s the complete of the document (PDF – 352 kB).
“To produce medicines, medical devices, equipment, exempt from PIS and Cofins, the health industry incurs costs in the purchase of inputs that are acquired with the burden of PIS and Cofins. By abruptly revoking this right, the government increases the cost of production, increasing the prices of goods essential to life.”they stated.
The entities ask the government to withdraw the MP or return it to the National Congress.
Read below who signed the document:
- Committee of the Health and Biotechnology Productive and Economic Complex (FIESP – CIESP)
- Abrafarma (Brazilian Pharmaceutical Wholesale Association);
- ABCFARMA (Brazilian Pharmaceutical Commerce Association);
- Abifina (Brazilian Association of Fine Chemical, Biotechnology and Specialty Industries);
- Abifisa (Brazilian Association of Companies in the Phytotherapeutic, Food Supplement and Health Promotion Sector);
- Abiis (Brazilian Alliance for Innovative Health Industry);
- Abimed (Brazilian Association of the Health Technology Industry);
- Abimo (Brazilian Association of the Medical Device Industry):
- Abiquifi (Brazilian Association of Pharmaceutical Input Industries);
- Abradilan (Brazilian Association of Distribution and Logistics of Pharmaceutical Products);
- Abradimex (Brazilian Association of Distributors of Specialized, Exceptional and Hospital Medicines);
- Abrafarma (Brazilian Association of Pharmacy and Drugstore Chains);
- Abraidi (Brazilian Association of Importers and Distributors of Health Products);
- Abrasp (Brazilian Association of the Parenteral Solutions Industry);
- Acessa (Brazilian Association of the Health Self-Care Products Industry);
- Alanac (National Pharmaceutical Laboratories Association);
- CBDL (Brazilian Chamber of Laboratory Diagnostics);
- CNSAÚDE (National Health Confederation);
- Febrafar (Brazilian Federation of Associative and Independent Pharmacy Networks);
- FEHOESP (Federation of Hospitals, Clinics and Laboratories of the State of São Paulo);
- FarmaBrasil Group (Brazilian Association of the Pharmaceutical Research and National Capital Industry);
- Interfarma (Association of the Pharmaceutical Research Industry);
- PróGenéricos (Brazilian Association of Generic and Biosimilar Medicines Industries);
- Sinaemo (Union of the Dental, Medical and Hospital Articles and Equipment Industry of the State of São Paulo);
- Sincofarma (São Paulo State Pharmaceutical Products Retail Trade Union);
- Sindicis (Union of Companies of the Health Industrial Complex in the State of Rio Grande do Sul);
- Sindifargo (Pharmaceutical Industries Union in the State of Goiás);
- Sindusfarma (Pharmaceutical Products Industry Syndicate);
- Sindusfarq (Union of Pharmaceutical and Chemical Products Industries for Industrial Purposes in the State of Minas Gerais); It is
- Sinfar-RJ (Union of the Pharmaceutical Products Industry of the State of Rio de Janeiro).
UNDERSTAND
The government issued the MP 1,227 of 2024 to offset losses from maintaining payroll tax relief for companies in 17 sectors and municipalities with up to 156.2 thousand inhabitants.
O STF (Supreme Federal Court) determined that the benefit can be maintained in 2024 to have a gradual end in the following years, as long as there is a refund of the tax waiver. In May, it gave a deadline of 60 days for the refund to be made.
The government of Luiz Inácio Lula da Silva (PT) committed to reimbursing R$26.3 billion in losses from the tax exemption. The Treasury states that the changes in PIS/Cofins credits should increase revenue by R$29.2 billion,
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