Expanding payroll exemptions is positive, argues Abimaq
Since 2011, companies from 17 sectors of the economy can choose to pay between 1% and 4.5% of their revenues to the government, instead of contributing 20% of their payroll to Social Security. It is the so-called payroll exemption that, in practice, reduces the tax burden on companies.
On the last 13th, Brasil 61 published a report on a farm study which proposes to relieve hiring of one to three or five minimum wages. Velloso says that he found out about the study, although without further details. For him, the portfolio project will only make sense if, in fact, it expands and does not replace the current exemption.
“If the measure were to keep the 17 sectors intact the way they are and add to this exemption all workers who earn from three to five minimum wages, that would be fine. Nothing against it, because you would be expanding a correct measure to other sectors.”
Exchanging the possibility of exemption for companies based on billing as a parameter for the criterion of minimum wages would be bad, especially for the industry, says Velloso, because the sector pays higher wages, on average, in relation to the others.
“I can look at the service sectors, mainly call center, this measure reaches them. When we look at the industry sectors that are part of those 17 sectors, which is the case of machinery and equipment, we have practically no employees who earn three to five minimum wages. Of course there are, but not the majority. Our wages are higher. So we wouldn’t be hit by the measure.”
In addition to the machinery and equipment segment, other labor-intensive industrial activities are covered by the current exemption, such as apparel and apparel, footwear, leather, vehicle manufacturing and textiles.
According to the Brazilian Industry Profile, these segments are responsible for more than one in every four jobs generated by the manufacturing industry.
Articulation
In the National Congress, several parliamentarians express the desire for a broad payroll exemption to encourage the job market. The main argument is that the more employees a company hires, the more taxes it pays, which discourages new hires.
This is the view of federal deputy Zé Vitor (PL-MG). According to him, the debate around exemption should be a priority for the Chamber in the second half. “A good part of the cost of a company comes from the taxes that employers pay as a result of hiring workers. So, less taxes, more cash, better financial health for companies and, of course, the condition to hire more professionals”, he assesses.
Treasury evaluates expanding payroll exemption for hires of up to three or five minimum wages
By Brasil 61
