Government vetoes MEIs and small business debt renegotiation

Government vetoes MEIs and small business debt renegotiation

President Jair Bolsonaro vetoed in full, this Friday (7), the project that instituted the Debt Payment Rescheduling Program under the Simples Nacional (Relp). The measure had been instituted by the Complementary Law Project 46, approved in december by the Chamber of Deputies, and which allowed the renegotiation of approximately R$ 50 billion in debts of individual micro-entrepreneurs and companies participating in the Simples Nacional (simplified tax regime).Government vetoes MEIs and small business debt renegotiation

The president’s message to Congress was published in the Federal Official Gazette (DOU). In it, the president argues that the legislative proposal “incurs a defect of unconstitutionality and contrary to the public interest, since, by instituting the tax benefit, it would imply a waiver of revenue, in violation of the provisions of art. 113 of the Constitutional Provisions Act Transitory, in Article 14 of Complementary Law No. 101, of May 4, 2000 – Fiscal Responsibility Law, and in Articles 125, Article 126 and Article 137 of Law No. 14.116, of December 31, 2020 – Law of Budget Guidelines 2021”. The veto was a recommendation by the federal government’s economic team.

Relp would be aimed at indebted companies. The taxpayer would have discounts on interest, fines and charges proportionally to the drop in sales in the period from March to December 2020 compared to the period from March to December 2019. Companies inactive in the period could also participate. After discounts and payment of a down payment, the remaining balance could be paid in up to 180 months, maturing in May of each year. However, for debts with Social Security, the installment would be in 60 months.

Now, the National Congress will analyze the president’s veto, which can be maintained or overturned. According to the rules in force, the rejection of the veto occurs by manifestation of the absolute majority of the votes of federal deputies and senators, that is, 257 votes of deputies and 41 votes of senators, computed separately. Registered a lower number of votes for rejection in one of the Houses, the veto is maintained.

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