The President of Congress, Rodrigo Pacheco (PSD-MG), this Monday, the 1st, overturned the section of the Provisional Measure that deals with the reinstatement of the social security rate in municipalities with up to 140 thousand inhabitants. The senator extended the MP edited by President Lula (PT)but decided that the specific provision on municipalities will not be extended.
According to Pacheco, “the power to issue provisional measures cannot have the power to promptly frustrate a decision taken by the Legislative Power in the process of forming a law, functioning as an additional and unforeseen stage of the legislative process, of true review of the rejection of the veto, in evident conflict with the principle of separation of Powers, an understanding also endorsed by the Federal Supreme Court”.
Pacheco’s decision came because, starting this month, the reimbursement of the municipalities’ payroll provided for in provisional measure 1,202 would be applied. The rate would go from 8% to 20%.
The tax benefit for municipalities had been approved by the National Congress in the bill that dealt with payroll relief for 17 sectors of the economy. Even after having a veto overturned by the Legislature, Lula issued an MP ending the benefit, which angered deputies and senators.
In his order, Pacheco stated that, the “Amendment to the payroll tax relief regime, both for economic sectors and municipalities, must be conveyed through a bill”. The president of the Senate had already indicated to the mayors that he would not let the reinstatement prevail.
