The Attorney General’s Office (AGU) filed a lawsuit this Thursday (9) to ask the Federal Supreme Court (STF) to recognize the constitutionality of the Decree 11.374/2023. Issued on January 1, the decree reestablishes the original rates of the Social Integration Program (PIS) and the Contribution for the Financing of Social Security (Cofins) on the financial income of large companies, which pay taxes under the non-cumulative regime.
The rapporteur for the process will be Minister Ricardo Lewandowski. He had his name drawn by the Supreme.
Signed by President Luiz Inácio Lula da Silva, the decree issued on the first day of the year replaces another decree, published on December 30 by then acting President Hamilton Mourão. The text halved the PIS/Cofins rates on financial income, such as investments in the financial market, of large companies. The measure will reduce revenue by R$ 5.823 billion this year, according to the Federal Revenue Service.
Since the beginning of the year, companies are going to court against the decree issued by the current government. They consider that the measure is unconstitutional because the increase in rates for federal contributions, such as PIS and Cofins, can only take effect 90 days after the publication of the decree. According to the Attorney General’s Office of the National Treasury (PGFN), 54 injunctions were filed by companies that question the validity of the decree.
The AGU argues that the decree is not about increasing the tax burden, but about recomposing the original rates, 0.65% for PIS and 4% for Cofins. In addition, the AGU claims that the decree of the then acting president would only come into force on January 1st. Thus, the reduced taxes were not even collected.
