According to the PT member, it was not Haddad’s responsibility to find a solution; he says that the proposal presented was not accepted “out of fear” of businesspeople
The president Luiz Inácio Lula da Silva (PT) stated this Thursday (June 13, 2024) that it is now up to the Senate and businesspeople to find a solution for tax relief on payroll and municipalities. He made the statement when defending the Minister of Finance, Fernando Haddadcriticism due to the return by Congress of part of the MP (provisional measure) of the compensation.
According to the PT member, it was not Haddad’s responsibility to find a solution, but the minister still presented a proposal that ended up not being accepted. “out of fear” of businesspeople.
Lula also said that, if there is no agreement on the issue in approximately 45 days, the maintenance of the exemption in 2024 will end, something he wanted “from the beginning”.
“It should not have been Haddad who should have taken responsibility. Haddad took over and made a proposal. Out of fear, businesspeople didn’t want to. So now, you have the Supreme Court ruling that’s going to happen. If there is no agreement on compensation within 45 days, the exemption will end. Which is what I wanted from the beginning, which is why I vetoed it at the time. So the ball is not in Haddad’s court, it is in the hands of the Senate and businesspeople. Find a solution”, he said.
The president made the statement to journalists after speaking at the 112th International Labor Conference, held in Geneva, Switzerland. He was invited to co-chair the Global Coalition for Social Justice, an initiative launched by the ILO (International Labor Organization).
Asked about the pressure on the minister in recent days, Lula stated that Haddad is “extraordinary” and that every minister “becomes the center of debates”. When making the comment, Lula misstated the position of the head of the economy by saying that he was a “extraordinary Minister of Defense”.
COMPENSATION MP
The provisional measure 1,227 of 2024published on June 4, was the solution found by the government to compensate for the payroll tax relief in 17 sectors of the economy and municipalities with up to 156.2 thousand inhabitants.
The act, which was in force for a week, limited the use of companies’ tax credits with PIS/Cofins (Social Integration Program/Contribution for Social Security Financing). The solution was strongly criticized by congressmen and various sectors of the economy.
The MP was returned to the government by the president of the Senate, Rodrigo Pacheco (PSD-MG), on Tuesday (June 11, 2024). The congressman cited the “constitutional duty” to return the PM. He mentioned paragraph 6 of article 195 of the Magna Carta, which establishes a period of 90 days for the tax changes in question.
Congress and the government have until July 16th to resolve the imbroglio and maintain the exemption in 2024. On May 17, the minister of the STF (Supreme Federal Court) Cristiano Zanin responded to a request from the government and suspended for 60 days the effect of the preliminary (provisional) decision signed by him that suspended the exemption.
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