Haddad meets with Lira seeking support to end tax exemption program for the events sector.

247 - Finance Minister Fernando Haddad (PT) meets this Tuesday (5) with the President of the Chamber of Deputies, Arthur Lira (PP-AL), and leaders of various parties in the House. The objective of the meeting is to discuss strategies to end the Emergency Program for the Resumption of the Events Sector (Perse). The proposal to revoke the program, presented by the Ministry of Finance, has generated controversy and protests among parliamentarians linked to the sector.

The initiative to end the Perse program was included in a provisional measure that also provided for the reinstatement of payroll taxes for 17 labor-intensive sectors of the economy. However, the government backtracked last week, revoking the section concerning the reinstatement of taxes, but maintaining Perse in the text. The proposal will now be analyzed by a joint committee of Congress, which is already in operation, but still without a designated rapporteur, the newspaper highlights. The Globe.

Haddad's allies believe that the retreat regarding the reintroduction of taxes has left room for negotiations on ending the Perse program. The minister argues that the program opened loopholes for illicit practices, such as money laundering and overbilling. The Federal Revenue Service is investigating evidence of irregularities in the program and plans to present its findings in the coming days.

The provisional measure proposes that companies in the events sector resume paying CSLL (Social Contribution on Net Profit) and PIS/Cofins (Social Integration Program/Contribution to Social Security Financing) starting in April of this year. The contribution to Corporate Income Tax would be reintroduced in January 2025. These taxes had been zeroed by the National Congress in 2021 as a way to compensate for the financial losses of companies due to the COVID-19 pandemic.