The Federal Supreme Court (STF) scheduled the trial of the preliminary injunction by Minister Edson Fachin that extended until September 11 the suspension of the process that deals with the exemption of payroll taxes for 17 sectors of the economy and certain municipalities until 2027. The virtual session will be on August 16.
The request for an extension was made last month by the Senate and the Attorney General’s Office (AGU), which intend to use the deadline to conclude negotiations between the federal government and parliamentarians for an agreement involving financial compensation from the Union for the exemption of the sectors.
Fachin made the decision as vice-president of the Court. Due to the July recess, it was up to the acting president to decide the matter.
Fachin understood that the government and parliamentarians must have the necessary time to build the agreement.
“The records demonstrate the effective efforts of the federal Executive and Legislative branches, as well as of various civil society groups, to resolve the issue. Therefore, it is up to the constitutional jurisdiction to promote such spaces and the political construction of such solutions,” the minister explained.
The first extension of the deadline was accepted on April 25 by Minister Cristiano Zanin, the rapporteur of the case, who granted a preliminary injunction to suspend the exemption from payroll taxes. The minister understood that the approval of the exemption by Congress did not indicate the financial impact on public accounts.
The following month, Zanin accepted the AGU’s request and suspended the tax exemption again for 60 days to allow Congress and the government to reach a compensation agreement.
