Pacheco allows excerpt from Haddad’s MP on reimbursing city halls to expire

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President of the Senate extended the provisional measure for another 60 days, but overturned part that removed tax benefits from municipalities with up to 156.2 thousand inhabitants; In a note, parliamentarian criticized the federal government

TON MOLINA/FOTOARENA/ESTADÃO CONTENTRodrigo Pacheco warned the government that the discussion about payroll tax relief must be fully addressed by bill

The President of the Senate, Rodrigo Pacheco (PSD-MG), took an important decision this Monday (1st) in relation to a provisional measure by the Minister of Finance, Fernando Haddad. The senator decided to let the section of the MP that provided for the payroll reimbursement of city halls, extending its validity by 60 days, but determining the removal of the part that dealt with municipal management. The measure, which would come into force this Monday, increasing the rate for municipalities from 8% to 20%, will no longer be applied due to Pacheco’s decision. In a note, the president of the Senate stated that the discussion about the payroll tax exemption and its possible new model must be fully addressed by bill, not by provisional measure. He criticized the government’s actions, highlighting that the Congress had already decided to exempt municipalities with up to 156,200 inhabitants. However, the Minas Gerais politician was open to a quick discussion on the subject.

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This is not the first time that the MP has undergone changes, since, just over a month ago, President Lula signed a second measure that revoked parts of the previous one, including the re-encumbrance of company payrolls in 17 sectors. Furthermore, the Executive sent a bill to address the issue, as requested by party leaders. The limitation on the compensation of tax credits through the courts above R$ 10 million and the gradual end of the Emergency Event Resumption Program (Perse) until 2025 remain in force. The provisional measure, which initially expired on April 1, 2024, had its deadline extended to May 31 after the extension.

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