The Minister of Labor and Employment also criticizes the handling of the issue by the Senate, which postponed the vote on the agreement
The Minister of Labor and Employment, Luiz Marinhostated that there are sectors – without specifying which ones – that are not telling the truth when debating the gradual re-taxation of payroll taxes for 17 sectors of the economy, as planned by the government. He also criticized what he calls the Senate’s “lack of good will” in resolving the issue.
“If you look at the 17 sectors, there are sectors that did not generate a single job with the tax relief. The ingredient of truth is missing from this debate. There are sectors that have had benefits for years on end, and when you look at the data, it does not generate any jobs,” said the minister, during a speech to journalists at a meeting of the G20 Brazilat the Ceará Events Center, in Fortaleza.
Also present at the event, Minister Paulo Teixeira (Agrarian Development and Family Farming) criticized the Senate’s handling of the issue and declared that the matter “is no longer with the government”.
“The Senate has to present a solution, because Minister Fernando Haddad offered several alternatives. So the Senate is lacking a bit of goodwill to resolve the issue. If it does not vote, if the Senate does not resolve the issue, it will uphold the Supreme Court’s decision, which is not what we want.”he said.
The tax relief policy was initiated in 2012 to replace the social security contribution. However, the government of President Luiz Inacio Lula da Silva (PT) wants to end the benefit in order to increase tax collection.
The federal government asked that the STF (Supreme Federal Court) considered the waiver of the payroll unconstitutional. Minister Cristiano Zanin, appointed by Lula, issued an injunction that suspended the benefit.
The government then reached an agreement with Congress, determining that the full tax relief will be valid until 2024, and will gradually end by 2028. Meanwhile, the STF gave 60 days to approve measures to compensate for the losses.
However, the President of the Senate, Rodrigo Pacheco (PSD-MG), said that there was no agreement on compensation. Therefore, he postponed the vote on the project on the subject and asked for the deadline given by the STF to be postponed.
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