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July 18, 2024
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Bill on tax relief will only be voted on with consensus, says Pacheco

Bill on tax relief will only be voted on with consensus, says Pacheco

Senate President Rodrigo Pacheco said this Wednesday (17) that the proposal that deals with the payroll tax relief of 17 sectors of the economy will be put back on the agenda when there is a consensus between the National Congress and the Executive Branch on the solution for financial compensation for the revenue losses resulting from the measure. The matter was scheduled to be analyzed this Wednesday, but the President of the Senate announced that it would be removed from the voting agenda. Bill on tax relief will only be voted on with consensus, says Pacheco

“This item will be included in due course until a consensus is established between the Legislative Branch and the Executive Branch regarding the source of compensation for the tax relief,” announced Pacheco.

On Tuesday (16), the Attorney General’s Office (AGU) and the Attorney General’s Office of the Senate filed a petition with the Federal Supreme Court (STF) requesting the extension of the deadline given by Minister Cristiano Zaninwhich suspended the payroll tax relief process for 17 sectors of the economy for 60 days. The deadline was due to end this week, but in response to the request, the Minister Edson Fachin ordered the extension until September 11th.

In Wednesday’s session, Pacheco thanked Minister Edson Fachin for his decision. “In a sensitive manner and understanding the circumstances of the importance of this agreement between the Legislative and Executive branches, he granted more time so that this consensus can be definitively established,” said the Senate President.

Bill 1,847/2024 provides for the gradual re-taxation of payroll taxes in 17 sectors of the economy, maintains the full exemption this year and establishes the gradual resumption of payroll taxation between 2025 and 2027.

In the search for a solution to offset the costs of the tax exemption, the Senate presidency presented a set of proposals, including the repatriation of resources abroad; a program to encourage the payment of fines in regulatory agencies; the collection of forgotten resources in the national financial system and the cutting of expenses in social programs that are the result of fraud and undue payments.

“All of these items are predictable and do not generate any type of political or economic stress for taxpayers, because they are all optional and essentially provide an incentive for regularization that is in the interest of and in favor of Brazilian taxpayers,” explained Pacheco.

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