Meeting of Senate leaders this Tuesday (9th January) should only align paths for the text sent by the government
At least 7 party leaders are expected to participate in a meeting at the Federal Senate this Tuesday (9 January 2023) to discuss the MP (provisional measure) 1,202 of 2023which proposes reimbursing sectors of the economy from April 2024. Any concrete decision on forwarding the proposal, however, will only be taken after congressmen recess in February.
The meeting's plan is to pass on the message to the production and services sector that congressmen discuss the topic. Last week, business confederations criticized the MP in a joint statement released and asked the president of the Senate, Rodrigo Pacheco (PSD-MG), return the measure to the government.
The president of the Upper House scheduled the meeting for 10 am in the Senate. Some leaders have already announced that they will not attend because they have agendas in their states or are traveling due to the recess.
The PSD leader, Otto Alencar (PSD-BA), will not be in Brasília. You can participate virtually. The PSD is Pacheco's party and has the largest bench in the House: 15 senators. The MDB leader, Eduardo Braga (AM), from the 3rd largest group in the House, with 11 senators, will also not participate in the meeting. Together, the 2 parties have 26 senators, 1 less than 1/3 of the Senate.
The author of the PL (bill) that extends the payroll tax exemption, the senator Efraim Filho (União Brasil-PB), leader of União Brasil, will be at the meeting. Government leaders in Congress, senator Randolfe Rodrigues (no party-AP), and in the Senate, Jacques Wagner (PT-BA), will also participate. In addition to them, there are the following confirmed leaders:
As shown by the Power360, the possibility of returning the MP as soon as it was published was discussed more intensely. However, with the rule expected to come into force in April, the idea lost strength and discussion on the topic in more depth should be debated during the proposal's processing, starting in February.
On Monday (January 8, 2023), Otto Alencar said he was against the idea because it would be something “tragic”. According to the senator, the decision could harm the relationship between the Executive and the Legislative, which was turbulent throughout 2023, but ended the year in a good situation.
On December 29, Pacheco stated that the MP “causes strangeness” and that it should decide on the future of the measure with an analysis of the content of the text and its constitutionality with the support of the Upper House's legislative consultancy.
Pacheco's request for analysis for legislative consultancy will be sent on Tuesday (Jan 9) and should be ready close to the return of recess, at the beginning of February.
UNDERSTAND THE MP
The president's government Luiz Inácio Lula da Silva (PT) published MP 1,202 with changes aimed at increasing tax collection. It deals with the re-encumbrance of 17 sectors of the economy, limits the compensation of tax credits obtained by companies through a court decision and extinguishes until 2025 the tax benefits granted to event promotion companies via Perse (Emergency Program for the Resumption of the Events Sector). It was published on December 29, 2023. Expires on April 1, 2024. Read the complete of the text (PDF – 100 kB).
The provisional measure was signed by Lula and the Minister of Finance, Fernando Haddad. The text determines that the new rules for exemption will come into force in April 2024.
The MP defines that payroll taxes will be levied again from April 2023. There will be a “partial exemption” for the 1st minimum wage. A remuneration that exceeds this range is subject to normal INSS taxation (up to 20%) (employer contribution).
The government created 2 groups of “economic activities” with differentiated taxation on the payroll, reaching 42 segments.
In return, companies will have to maintain the same or greater number of employees as on January 1st of each year.
Read what it looks like in the infographic below:
Haddad intends to discuss the benefits for municipalities separately. O Power360 found that the Treasury wants to dialogue with city halls to seek a “alternative solution”.
#Decision #reencumbrance #February
