Entities express concern about the end of the 60 days granted for Congress to consider the project
The entities representing the 17 sectors benefiting from the Payroll Exemption sent, this Monday (15/07), a letter to the president of the National Congress and the Federal Senate, Rodrigo Pacheco, requesting an extension of the period for suspending the precautionary measure in Direct Action of Unconstitutionality (ADI) No. 7,633, decision given by Minister Cristiano Zanin, of the Federal Supreme Court.
The sectors involved argue that the extension is essential to ensure some financial predictability, protect jobs and guarantee the orderly implementation of the political agreement surrounding the payroll replacement taxation policy.
Check out the letter in full:
“To His Excellency President of the National Congress, Senator RODRIGO PACHECO
Your Excellency Mr President,
The 17 sectors covered by the replacement taxation of the employer's social security contribution hereby express their extreme concern with the current status of negotiations aimed at obtaining a solution through interinstitutional dialogue aimed at overcoming the alleged defects present in Law No. 14,784/2023 , in accordance with the decision given by the Honorable Minister Cristiano Zanin, of the Federal Supreme Court, within the scope of Direct Action of Unconstitutionality (ADI) no. 7,633. The aforementioned decision was suspended by the ADI Rapporteur himself for 60 days to allow the implementation of a political agreement between the Executive and the Senate, but this period is running out, hence the concern expressed in this letter.
We recognize and support the joint efforts made by the Legislature and the Executive in the search for an adequate solution to the budgetary issues arising from the payroll tax exemption, in accordance with the STF decision.
However, it is imperative to highlight that the cash insecurity generated by the current situation has caused serious problems for companies in the 17 sectors involved, as many of these companies face enormous difficulties in mobilizing or obtaining the necessary resources to prepare themselves to cover almost immediately with the effects of any expiry of the aforementioned initial period of 60 days without an adequate solution being reached. Business activity demands financial planning, which is even more difficult to achieve with such insecurity.
Given the magnitude of the situation and its potential economic and social impact, we believe that it would be appropriate for Your Excellency, President of the National Congress, to inform the Minister Rapporteur that the institutional dialogue between the Legislative and Executive on this topic continues to be carried out and that the extension the period for suspending the precautionary measure in the ADI in question is essential to allow the implementation, during the month of August, of the political agreement reached, after the parliamentary recess that begins on July 18th.
We firmly believe that this extension is essential to ensure some financial predictability for the companies involved, protect jobs and guarantee the orderly implementation of the political agreement around the payroll replacement taxation policy.
We are available to cooperate with the National Congress and other institutions involved, promoting the social dialogue necessary to resolve this issue of such great relevance and impact.”
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