Senators see Pacheco’s “right decision” in exempting municipalities

Senators see Pacheco’s “right decision” in exempting municipalities
Senators see Pacheco’s “right decision” in exempting municipalities

Ciro Nogueira and Angelo Coronel assess that the president of the Senate sided with the municipalities; Jaques Wagner says he was not warned

The assessment made in the Senate on the decision by the president of the Upper House, Rodrigo Pacheco (PSD-MG), to cut from MP (provisional measure) 1,202 of 2023 the section that determined the end of exemption (tax exemption or reduction) for municipalities with up to 156.2 thousand inhabitants is positive, according to the May360. In the view of senators, Pacheco sided with the municipalities in his decision.

“Pacheco made the most rational decision possible, meeting the expectations of the municipalities. The president simply asserted the autonomy and authority of the National Congress. You cannot approve something and have an MP come to practically revoke an approval. I believe it is a question of justice”declared to the Power36o Senator Angelo Coronel (PSD-BA), author of the amendment that included municipalities in the exemption.

On Monday (April 1), Pacheco extended the MP for another 60 days, which should now only deal with limiting the compensation of tax credits obtained by companies through a court decision.

The leader of the Minority in the Senate, Ciro Nogueira (PP-PI), told this digital newspaper that the reinstatement would “kill the bills” of city halls.

“Maintaining tax relief on municipal payrolls is more than an opposition agenda, it is an agenda for those who care about Brazilians. The government’s decision to interrupt this fundamental benefit was absurd and would wipe out city halls’ bills.”he said.

Ciro also assessed the decision as the right one to make. “We talked a lot with President Rodrigo Pacheco about this topic and I always had confidence that he would make the right decision, as he did”he declared.

The Minister of Finance, Fernando Haddad, said that changes in the social security contributions of municipalities will now be analyzed in the bill (1,027 of 2024) of the Government leader in the Chamber, deputy José Guimarães (PT-CE).

For Senator Coronel, the government needs to first bring together the mayors to find out what can be adjusted, and then discuss the issue in Congress.

“The right thing to do is to hold a meeting of accounts between city halls and the union and after that sit down to adjust possible changes to the law that is in force”he declared.


The leader of the Government in the Senate, Jaques Wagner (PT-CE), said this Tuesday (April 2, 2024) that Pacheco did not warn him about his decision.

“We talked last week. This conversation came up. Our position, of course, was no extension [da desoneração da folha de pagamentos]said Jacques. “He [Pacheco] discussed this, but the gavel was not dropped. Then, due to the demand from municipalities, he must have made up his mind.”he declared.

The meeting that Jaques Wagner refers to was held last week between the government and the president of the Senate, to define Planalto’s priorities in Congress.

Haddad had already stated that the exemption for municipalities will be discussed in a bill that will be sent to the National Congress.

The leader of the Government in the Senate denied that the relationship with Pacheco had “some stress” because of the decision on the MP. According to the congressman, it will now be necessary to assess the scenario in relation to the bill to find out whether there will be a climate for approval.

Earlier, the Finance Minister defended a pact to rebalance public accounts. He said he was not consulted by the president of the Senate, who dehydrated the MP by maintaining the tax exemption for municipalities with up to 156 thousand inhabitants.

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The article is in Portuguese

Tags: Senators Pachecos decision exempting municipalities



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