The National Congress overturned today (14) the presidential vetoes of provisions of three laws passed by parliament. With the overturning of the vetoes, the passages discussed in today’s joint session will be promulgated.
One of the vetoes overturned concerns incentives for the recycling industry. Sections of a law that created the Support Fund for Recycling Actions (Favorecicle) and the Investment Funds for Recycling Projects (ProRecicle) were vetoed.
The partial overthrow of the vetoes restored the articles dealing with the income tax deduction of support for recycling projects approved by the Ministry of the Environment. The mechanism of this deduction is similar to what happens with cultural projects under the Rouanet Law. The parliamentarians, however, decided to keep the part of the veto that rejected the exemption from Tax on Financial Operations (IOF) on the operations of the new funds.
Vetoes applied to two devices of the regulatory framework for mini-electric power generation were also overturned. The veto to the inclusion of distributed energy mini and microgeneration projects in the Special Incentive Scheme for Infrastructure Development (Reidi) was overturned. In this way, these projects will be able to receive resources from Reidi. The veto on the permission to classify floating photovoltaic generation units installed on water depths as mini or microgenerators was also overturned.
A third veto considered was the Complementary Law Project (PLP) 18/22, on the compensation of the Union to the states for the establishment of ceiling on the rate of the Tax on Circulation of Goods and Services (ICMS) on items considered essential. Six of 15 devices vetoed in the PLP were overturned.
Among the items of the presidential veto that will now be resumed in the law is financial compensation through the discount of debt installments refinanced by the Union. The section that provided for compensation to the states through the appropriation of the Union’s portion related to the Financial Compensation for the Exploration of Mineral Resources (CFEM) will also come into force.
Another device that had the veto overturned, and which will therefore come into effect, eliminates the collection of the Contribution to the Social Integration Program and the Public Servant Asset Formation Program (PIS/Pasep) and the Contribution to the Financing of Security (Cofins) on products such as gasoline and ethanol.
*With information from the Senate Agency
