Robinson Barreirinhas, secretary of the Federal Revenue, says he recognizes “political challenge” to approve the measures
O Ministry of Finance will need to increase R$26.3 billion in revenue in 2024 to compensate for the tax waiver of the payroll exemption in 17 sectors of the economy and municipalities with up to 156.2 thousand inhabitants.
The amount was confirmed this Wednesday (May 22, 2024) by the special secretary of the Federal Revenue, Robinson Barreirinhas. It is the sum of the impact of the waiver on sectors (R$ 15.8 billion) and municipalities (R$ 10.5 billion).
O STF (Supreme Federal Court) gave a period of 60 days to approve measures to compensate for losses with the tax exemption. If it is not complied with, the tax benefit ends.
“We are calm, as we have a court decision. If there is no effective compensation, the exemption is no longer valid.”he said Deadline barriers.
However, the secretary stated that he recognized what he called “political challenge” to approve the measures. He spoke to journalists while commenting on the Bimonthly Income and Expense Assessment Report, on Ministry of Planning and Budget.
“I am not underestimating the challenge of political debate. I am not underestimating the challenge of negotiations in Congress. But for us, Revenue technicians, it is quite peaceful. Either there is a compensatory measure or the decision itself resolves this”he declared.
The Minister of Finance, Fernando Haddadstated on Tuesday (May 21) that the compensation measures must be made public by Friday (May 25) in the report that will be sent to the Senate by Jacques Wagner (PT-BA), leader of the Government in the Upper House.
When he spoke to journalists, Barreirinhas did not want to anticipate what will be proposed. He again stated that they should be announced on Friday (May 25).
UNDERSTAND
Releasing a sector means that it will have a reduction or exemption from taxes. In practice, it makes hiring and maintaining employees cheaper in companies. Defenders of the mechanism say that this type of practice heats up the economy and promotes job creation.
The Lula government, however, wants to end the benefit. The more tax waivers, the lower the tax revenue. Haddad wants to balance public accounts and close the gap in 2024.
In its eagerness to gain momentum to negotiate the end of the benefit with Congress, the federal government asked the Court to consider the waiver of the payroll unconstitutional.
Minister Cristiano Zanin, appointed by the president Luiz Inácio Lula da Silva (PT), issued an injunction that suspended the benefit.
After Zanin’s provisional decision, the government reached an agreement with Congress. The exemption for sectors is fully valid in 2024, but will gradually end in the following years until 2028.
In the case of municipalities, the benefit continues to be valid until 2024. In the following years, a solution to the impasse has not yet been found.
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