States and DF sue STF against law that limits ICMS collection

Minister extends the execution of the Paulo Gustavo Law until December 2023

The Minister of the Federal Supreme Court (STF), Cármen Lúcia, responded to a request from the Sustainability Network party and extended until December 31th 2023 the deadline for executing the call Law Paulo Gustavo (PLC No. 195, of 2022).Minister extends the execution of the Paulo Gustavo Law until December 2023

In force since July 2022, the text approved by the National Congress established rules to be complied with by the Union to help, with financial resources, states and municipalities to implement emergency actions to help workers in the cultural sector harmed by the consequences of the covid-19 pandemic.

The federal government even vetoed the Paulo Gustavo Law and also the Aldir Blanc Law (Law No. 14,399), which, in July of this year, established the National Police for the Promotion of Culture, but the National Congress overturned the presidential vetoes, restoring the obligation of the Union to transfer R$ 3.86 billion from the National Culture Fund (FNC) to states and municipalities to promote cultural activities.

Financial transfers

Subsequently, the federal government edited the Provisional Measure No. 1,135changing parts of the Paulo Gustavo and Aldir Blanc laws, postponing financial transfers and conditioning aid to budget availability.

In the Direct Action of Unconstitutionality that it filed with the STF, Sustainability alleges that the federal government not only did not “promptly act in a timely manner”, that is, it did not commit itself appropriately, “to fully comply with the budgetary execution in the cultural sector in 2022” , as, even if he had done so, “there would possibly not be enough time to have the full and adequate execution [orçamentária] until the 31st of December [hoje]”.

Based on the facts narrated by Sustainability, in her decision, Minister Cármen Lúcia classifies the federal government’s conduct as “administrative indolence”.

She remembers that at the beginning from Novemberthe plenary of the Court had already approved, by a majority, the suspension of the effects of MP 1,135/2022, maintaining the effectiveness of the two laws previously approved by the Legislative Power, maintaining the obligation of Union transfers to states and municipalities.

Resources

In addition to authorizing the execution of the Paulo Gustavo Law by states and municipalities until December 31, 2023 or until the National Congress completes the appreciation of Provisional Measure No. of Tourism (currently responsible for conducting the national policy for culture) carry out, up to today (31), the overall commitment of resources destined to the Special Secretariat for Culture (Secult), under penalty of administrative responsibility for anyone who prevents this from being done.

“Had the extension of the period initially provided for in the legal norms not been allowed and not complied with by the action of the federal Executive Branch, the object and purpose of the legislation formulated as “the set of ’emergency actions aimed at the cultural sector to be adopted as a result of of the economic and social effects of the covid-19 pandemic”, said the minister in her decision.

Due to the short period of time for compliance with the decision of this ThursdayOn Thursday (29), the close of the end of the 2022 budgetary period, the Minister determined that the amounts destined to each favored federated entity be entered in outstanding amounts to be paid.

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