Pacheco meets with Haddad to define the future of the Re-taxation Provisional Measure.

247 - After returning from vacation, Finance Minister Fernando Haddad (PT) will meet this Monday (15) with the President of the Senate, Rodrigo Pacheco (PSD-MG), to discuss crucial issues for the economic agenda of the Lula (PT) government in 2024. The focus will be on the Provisional Measure (MP) proposing the gradual reintroduction of payroll taxes for 17 sectors of the economy and the taxation of international online purchases, reports the Metropoliss.

The provisional measure, issued at the end of last year, faces resistance from both representatives of the affected sectors and parliamentarians, who are calling for the text to be returned. Faced with this opposition, the government is considering establishing an import tax on e-commerce as an alternative to maintain the tax exemption and balance the budget. Last year, the government considered resuming the tax rate for e-commerce companies on international purchases of up to US$50, but, due to strong criticism, it backed down. 

Negotiations regarding the proposed tax reinstatement made significant progress last week. Pacheco participated in a meeting with the Executive Secretary of the Treasury, Dario Durigan, and the government leader in the Senate, Jaques Wagner (PT-BA), to discuss the matter. After the meeting, Wagner stated that the government is not considering returning the provisional measure.

The measure is scheduled to take effect on April 1st, allowing the government sufficient time to negotiate with Congress. The legislative recess ends in February, and until then, no formal decision is expected to be made, but lawmakers have been reacting and pressing for negotiations.

Pacheco highlighted the importance of dialogue between the Executive and Legislative branches and stressed that he will only make a decision on the text of the Provisional Measure after meeting with Minister Fernando Haddad. "It is very important to have this dialogue between the Executive and Legislative branches. We must have commitment," he stated.

The tax exemption was implemented during Dilma Rousseff's (PT) first term in 2011, with the goal of easing tax burdens and stimulating job creation. Over the years, it has undergone successive extensions.

In practice, the tax exemption implies a reduction in labor costs paid by companies in certain sectors. Before the exemption, these companies paid 20% in social security contributions, known as payroll taxes. With the differentiated rule, they now pay rates of 1% to 4,5% on gross revenue.

Initially valid until December 31, 2023, Congress orchestrated its extension for another four years, until 2027. However, Haddad indicated that this extension would be unconstitutional and proposed the alternative Provisional Measure at the end of last year.

In the Provisional Measure on Tax Re-implementation, the government changed its approach, opting for a division of companies into two groups, considering the National Classification of Economic Activities (CNAE). The main activity of each business, based on the previous calendar year, will determine the payroll tax rates between 2024 and 2027, ranging from 10% to 17,5% or from 15% to 18,75%, depending on the group.

The text stipulates that the reduced rates will only apply to the insured person's contribution salary up to the value of one minimum wage (R$ 1.412). For amounts exceeding this limit, the rates established by law will apply.