01/04/2024 – 11:58
A Provisional Measure announced by the government at the end of December 2023 to gradually reinstate payroll payments is not well-received by party leaders in the National Congress, as the president of the Senate, Rodrigo Pacheco (PSB), reportedly signaled to minister Fernando Haddad.
+ Payroll repayment: Pacheco calls Haddad and warns about rejection of the measure
Provisional Measure 1202/23 was published in the Official Gazette of the Union on Friday, December 29, which limits the exemption from the payroll of 17 sectors of the economy. The proposal establishes a gradual return of employer contributions to salaries, in a phased manner, until 2027. The MP also provides for a lower tax rate, starting in April, for a minimum wage per worker and a gradual reduction in the benefit until 2027.
Haddad proposed an end to the payroll tax exemption, which was revoked after a veto by President Lula (PT) in the first half of December. According to the ministry's projections, the measure should recover R$6 billion of the R$12 billion that would be lost with the total exemption. At the end of December, it was announced that changes to the text were possible, in addition to the MP being returned to the government.
The MP proposal announced at the end of December revokes articles of Law No. 12,546/2011, which partially exempts the social security contribution on the payroll, revokes the reduced rate of the social security contribution applicable to certain Municipalities and limits the offset of credits arising from decisions final and unappealable legal proceedings. The entire package is focused on the Lula 3 government's zero deficit targets for 2024, according to Finance.
The exemption was extended by Congress and vetoed by the Lula government. Congress completely overturned the veto, reestablishing the exemption through Law 14,784/23.
Opposition reacts: 'It will not be welcomed'
Leaders and other names in opposition to the government in the Legislature spoke about the measure, which must be voted on in Congress in a mixed committee – Senate and Chamber.
Sergio Moro (União-SP) stated, via X, that he was against Haddad's package. “The year 2023 ends as it began, with the Lula Government wanting more taxes. The MP for reimbursing the payroll offends the taxpayer and Congress,” he wrote, still in December 2023.
Vice leader in the Senate,Damares Alves (Republicanos-DF) endorsed the minority's speech in the plenary. “Know that if it depends on opposition senators, the crazy Provisional Measure that ends the payroll tax exemption for several sectors will not be accepted”, he wrote on his profile on X. Federal deputy Bia Kicis (PL-DF) also reacted: “Disrespect for Congress. I hope Congress reacts as an Institution,” she wrote, sharing an image of Lula and Haddad on the social network.
What is payroll relief?
The payroll tax exemption replaces the employer's social security contribution, currently 20% on salaries, with rates of 1% to 4.5% on gross revenue. The program was extended by Congress until 2027.
In short, these are tax benefits for companies. In this case, 17 sectors are directly impacted, such as the textile and clothing industry, transport, call centers, among others. See the relationship here.
The provisional measure issued on December 29 by the Lula government excludes eight of the 17 sectors previously covered by the benefit from the payroll tax relief program.
With information from Agência Câmara de Notícias*
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