The president of the Senate says he will analyze the measure approved by Lula and listen to the party leaders in January; the deputies ask him to return the text
The President of the Senate, Rodrigo Pacheco (PSD-MG), declared on Friday (29 December 2023) that the MP (interim measure) proposing the gradual reinstatement of salaries from April 2024 sent by the government causes “oddity”. The measure was announced by the Ministry of Finance on Thursday (28 December) and published on Friday.
In a publication on He also stated that he will discuss the issue with party leaders in the Senate and House before making a decision on its processing in Congress or on the deputy’s return to government.
“In addition to the strangeness of the deconstitution of the recent Congressional decision on the subject, a technical analysis of the constitutionality aspects of the parliamentarian is needed”, Pacheco wrote. He intends to listen to party leaders in January.
Here is the full note released by Pacheco:
“I will analyze the content of the MP with the assistance of the legislative advice of the federal Senate. In addition to the strangeness surrounding the deconstitution of Congress’ recent decision on the subject, a technical analysis of the parliamentarian’s constitutionality aspects is necessary. There is also a context of political reaction to its publication that needs to be considered, so it will also be important to bring the leaders of both Houses together to listen to them, which I intend to do in the first few days of January. Only after completing these steps will I be able to decide whether or not it will be discussed in the National Congress.”
The corporate payroll tax exemption was approved by Congress in 2023. It would be valid until 2027. Lula vetoed the measure. On December 14, Congress overturned the veto by a wide margin. In the Chamber the votes against Planalto were 378 and only 78 in favour. In the Senate 60 votes to overturn the veto and 13 for Lula.
The exemption allows companies in 17 industries to pay rates of between 1% and 4.5% on gross revenues, instead of 20% on payroll. The measure concerns sectors such as footwear, call centercivil construction, communications, clothing and apparel, among others.
The FPE (Parliamentary Front for Entrepreneurship), which brings together 205 deputies and 46 senators, has asked for the deputy to return to Planalto. In the letter sent to Pacheco, the president of the Front, MP Joaquim Passarinho (PL-PA), states that the government’s insistence on refunding salaries goes against the Legislature, which has just discussed the issue. Here is the full letter (PDF – 121 kB).
The Constitution establishes that parliamentarians can only be discharged for reasons of urgency, among other reasons. Since the exemption and Perse points will only be valid in April 2024, this urgency criterion will not be met. Congress can use this argument to not analyze the measure and return it to Planalto.
Congress has 120 days to analyze the proposal. The deadline is frozen during the interval. The counting is not expected to begin until early February, when the Legislature resumes work. Deputies have already criticized the government’s initiative.
UNDERSTANDING MP
The government of President Luiz Inácio Lula da Silva (PT) published MP 1.202 on Friday with changes aimed at increasing tax collection. The text contains various topics in a single provisional provision:
- increased payroll taxes in 17 sectors of the economy;
- limitation of compensatory tax credits obtained by businesses;
- increase in taxes through the progressive reduction of Perse (Emergency Program for the Recovery of the Events Sector).
The provisional provision was signed by Lula and the Minister of Finance, Fernando Haddad. The text establishes that the new exemption rules will come into force in April 2024.
The congressman defines that payroll taxes will be collected again starting in April 2023. There will be a “partial exemption” for the 1st minimum wage. Salary exceeding this range is subject to normal INSS taxation (up to 20%) (employer contribution).
The government has created 2 groups of “economic activities” with differentiated taxation in the pay slip, reaching 42 sectors.
In exchange, companies will be required to retain the same or greater number of employees as they did on January 1 each year.
Read what it looks like in the infographic below:
Haddad plans to discuss the benefits to municipalities separately. OR Poder360 discovered that the Treasury Ministry wants to communicate with the municipalities to seek a “alternative solution”.
2023-12-29 22:01:20
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