08/23/2024 – 7:07
Finance Minister Fernando Haddad said this Thursday, the 22nd, that the government will submit to Congress, along with the 2025 Budget proposal, a bill providing for an increase in the rates of the Social Contribution on Net Income (CSLL) – charged on companies’ profits – and the taxation of Interest on Equity (JCP) – remuneration of companies to their shareholders.
According to him, the measures will serve as a kind of guarantee in case the proposals approved by the Senate are not enough to compensate for the loss of revenue from the payroll tax relief next year. The 2025 Annual Budget Law proposal must be presented by the 31st.
“The agreement with the Senate is that, if the measures announced by the Senate are not sufficient, the budget law must provide for compensatory measures for the tax relief in the following years,” he said. “Our understanding, which may be contradicted by the facts, is that what was approved by the Senate will solve the problem for 2024, but we will wait for the Senate’s more optimistic calculations to be realized.” The text of the tax relief still has to be approved by the Chamber.
The bill that passed the Senate lists measures to compensate for the Union’s revenue losses due to the benefit, such as updating assets in Income Tax and the repatriation of assets held abroad.
Given the impasse between the government and Congress, the Treasury Department suggested including a trigger tax exemption in the text so that, if the measures presented were not sufficient to cover the deficit estimated by the government, there would be an increase in the CSLL as compensation. However, after a meeting with President Luiz Inácio Lula da Silva, Haddad and other ministers, the government decided not to change the CSLL. The same occurred with the JCP instrument: the tax increase was foreseen in the text, but was left out of the final report.
The information is from the newspaper The State of S. Paulo.
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