Haddad assesses approval of tax relief project: “important institutional advancement”

Finance Minister Fernando Haddad assessed, on Tuesday (20), the approval of the Bill that provides for the exemption of payroll taxes, starting in 2025, as positive. According to him, the proposal is an important institutional advance and will be fundamental for a future stabilization of the country's public accounts.

The project includes compensatory actions for losses in government revenue resulting from partial tax relief. Through a progressive transition, seventeen sectors of the Brazilian economy and municipalities with up to 156,000 inhabitants will be relieved by gradually resuming the collection of payroll contributions.

“This is the first time that the National Congress has compensated for a tax exemption. The fact that there is this willingness to respect a Supreme Court decision and define a new framework for relations with the Executive, in which everyone is covered by the Fiscal Responsibility Law, is a victory that needs to be celebrated.”, said Haddad.

Minister comments on non-inclusion of JCP increase

Haddad commented on the non-inclusion in the bill of measures to compensate for the increase in Interest on Equity (JCP), from 15% to 20%. The minister emphasized that given the divergence between Congress and the government regarding the figures, there was a consensus to adopt the proposal by Senate President Rodrigo Pacheco. If necessary, additional measures would be included in the proposal in the future.If they (measures) are not sufficient, the negotiation period is reopened for the following years.”, highlighted Fernando Haddad.

_{Proposal was approved in the Senate on Tuesday night (20) (Photo: reproduction/Jefferson Rudy/Agência Senado)}

Project

The Federal Senate approved, on Tuesday night (20), the bill to reduce payroll taxes. The proposal includes a gradual reduction starting in 2025, ending in 2028, for 17 sectors of the economy and municipalities with up to 156 thousand inhabitants. The bill outlines measures to compensate for losses in government revenue. The measure complies with the decision of the Supreme Federal Court (STF), which set a deadline of September 11 for approval by the Legislature. The text was approved through a symbolic agreement and will now go to the Chamber of Deputies.

Featured Photo: Finance Minister Fernando Haddad, at the G20 event, Rio de Janeiro, July 2024 (Reproduction: Dado Galdieri/Bloomberg/Getty Images embed)