Haddad wants to link payroll exemption to tax reform

The Minister of Finance, Fernando Haddad, will try to convince the Senate to link discussions on payroll exemptions for 17 sectors of the economy to the second phase of the tax reform, expected to be processed in the second half of the year in the National Congress. According to him, it makes more sense to leave the topic for the moment when taxes on income are redesigned.

Without going into details, the minister said that the proposal approved by the Senate Economic Affairs Committee (CAE) this Tuesday (13) is unconstitutional. “Congress itself approved a constitutional amendment saying that this benefit (payroll exemption) had an expiry date. So we are raising awareness among senators. We will insist that the opportunity for the discussion is not now, it is for after the (first phase of) tax reform, so that we can look into it”, he commented.

In the first vote, the CAE approved the extension until 2027 of payroll exemption for the sectors that would have the benefit until the end of the year. The proposal still needs to be voted on in the second round by the committee. If there is no appeal for voting in the Senate Plenary, the text will go straight to the Chamber of Deputies.

Haddad stated that the economic team is working on an alternative proposal on the subject, which can be included in the second phase of the tax reform. “We are trying to be respectful of Congress. I am asking for confidence that, after the (first phase) of the tax reform, we will enter the second phase in which other taxes will be redesigned. The planned benefits are valid until the end of the year, I cannot understand the rush, ”he said.

regional funds

Regarding the first phase of the tax reform, which will simplify taxation on consumption, Haddad defended the existence of a regional development fund to compensate for any losses incurred by the states with changes in the Tax on the Circulation of Goods and Services (ICMS) and the end of tax incentives. However, he said such a fund needs to be capped and gradually adopted. “Limit, there has to be one, of course, and there has to be a scale. This has to be”, he commented, without going into details.

The minister said he was open to a possible extension of the deadline for migrating from the current tax regime to the new one provided for in the new tax reform. “This is an idea that was presented to us. We are analyzing it, but the text, conditionally, will be presented in the next few days, I think, ”he said.

Yesterday, Haddad met with the rapporteur of the proposal for the first phase of the tax reform in the Chamber, deputy Aguinaldo Ribeiro (PP-PB). According to the minister, the change in the taxation system will leverage the country’s growth, by creating a “more robust and transparent” regime.

framework

Earlier this Tuesday night, Haddad met with Senator Omar Aziz (PSD-AM), rapporteur for the new framework project tax in the Senate. The minister asked Congress for “parsimony” not to change the text approved by the deputies. “What we agree with Aziz is to do something with parsimony, and (only) if that’s the case,” Haddad said after the meeting.

The minister recalled that, in the case of amendments that change the merits of an article, the text will have to be voted on again by the deputies. Haddad, however, said that any changes must be agreed with the mayor, Arthur Lira. “What we agreed on first is to respect the work of the Chamber”, he declared.

Claiming politeness with the rapporteur in the Senate, the minister said he cannot say that the government is totally closed to changes in the proposal. “I cannot say that we are not open to anything. The senator will not stamp the project, he has his reflection, his circumstances. So, I think that the more respectful we are in relation to the work of the Senate, the closer the result of the Senate will be to that of the Chamber, which is what we want”, commented Haddad.