With the agreement of the party leaders, the Senate confirmed the deputies' decision and, by 64 votes to 2, overthrew the presidential veto 26/2020 that prevented the extension of the payroll exemption for companies in 17 sectors of the economy until 2021. In the Chamber of Deputies, there were 430 votes to 33 in favor of the overthrow. “It is an important result, guided by the dialogue between entities, professionals and parliamentarians, which guarantees the maintenance of jobs and legal security. We are going to celebrate this victory, but we have to remember that this topic should be included in the discussions on tax reform ”, points out Rodolfo Fücher, president of ABES.
With the Congress decision, the tax waiver will be extended until December 2021. The benefit is for companies with more than 6 million workers in the footwear, textile, information technology, civil construction and public passenger transport companies, among others. The movement that brought together 37 sector entities released two letters of thanks - one to Congress and one to the President of the Republic, Jair Bolsonaro - in which they reiterate the benefits and are grateful for the extension.
“The crisis economical caused by the pandemic, to a greater or lesser extent, brought challenges to all national economic sectors. However, for companies using the Social Security Contribution on Gross Revenue (CPRB), it would be very difficult to suffer a heavy increase in the tax burden at this time, which, directly, would reflect mainly on employment ”, says an excerpt of the letter to parliamentarians.
Soon after, the open letter brings the following considerations: “With the results of the votes in the House and the Senate, the National Congress not only contributed to saving hundreds of thousands of jobs as well as signaling the importance of Brazil reviewing the excessive burden of payroll charges, which is so detrimental to job creation“. See here the Open Letter to the National Congress - Extension of Exemption and the Open Letter to the President of the Republic - Thanks for the extension of the exemption from payroll .
“The agreement built by Government leaders, together with Congressional leaders, brought security for companies to better plan the year 2021, guaranteeing a boost to jobs in our sectors. In this sense, just as we thank the National Congress, in an Open Letter, for the sensitivity and support of leaders and parliamentarians to the said extension, we are fully aware that without your Excellency's decision and support, the reversal of the veto would not be implemented in time ” , it is one of the highlights of the message to the President of the Republic.
The extension was included in the text of the legislation by the National Congress in May, during the appraisal of Provisional Measure 936/2020, which created the Emergency Program for the Maintenance of Employment and Income. The MP gave rise to Law 14,020, of 2020, which allows the reduction of working hours and wages during the coronavirus pandemic.
The exemption allows companies in these sectors to contribute to Social Security with a percentage ranging from 1% to 4.5% on gross sales, instead of 20% on payroll contributions.
The government leader in Congress, Senator Eduardo Gomes (MDB-TO), highlighted the construction of a consensus on the overturning of the veto. For Gomes, the measure will help in the resumption of the economy. The opposition, on the other hand, highlighted the social pressure for the measure and considered that there was a defeat by the government's economic team.
Senator Izalci Lucas (PDSB-DF) recalled that these companies also need planning. “We are already in November. In any budget that takes place on a project, on a major project, it is necessary to know what the impact of the cost is, and this overturning of the veto is very important, certainly, especially for civil construction and for all those who generate jobs, ”said the parliamentarian.
Sources: ABES, Agência Câmara de Notícias and Senate Agenda
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