PEC uses money forgotten in PIS/Pasep for public investments

A device included in the Transition PEC —the elected government’s main bet to fulfill electoral promises— allows resources stagnated in the PIS/Pasep accounts to be used to finance investments outside the spending ceiling, a fiscal rule that limits the growth of expenses.

In August, Caixa Econômica Federal reported that there are R$ 24.6 billion in PIS/Pasep quotas that can be withdrawn by 10.6 million people. As the PEC was approved with an extra expense of BRL 168 billion, the impact of the proposal is around BRL 200 billion.

The text states that the resources stopped for “a period of more than 20 years” will be considered “abandoned”, and may be appropriated by the National Treasury and used for investment expenses.

The appropriation notice must be published in the DOU (Official Gazette). If the “possible legitimate interest” does not claim the money within 60 days after publication in the DOU, the accounts will be closed. The interested party may request reimbursement from the Union within a period of up to five years from the closing of the accounts.

The device that includes the PIS/Pasep was not in the initial report of Senator Alexandre Silveira (PSD-MG) and was included at the suggestion of Senator Fernando Bezerra (MDB-PE), former leader of the government of Jair Bolsonaro (PL) in the Senate. . The final text of the PEC does not explain, however, who came up with the proposal.

Bezerra told the Sheet that the change is “neutral” from a tax point of view. “First there will be revenue creation and then investment expenses that are exceptionalized from the ceiling. From a tax point of view it is neutral. The market reaction today [nesta quarta] It was very good in relation to the PEC.”

“And, we include a device that allows the Union to use the values ​​of funds abandoned in accounts referring to accumulated assets dealt with in § 2 of article 239 of the Federal Constitution, whose funds have not been claimed for a period exceeding 20 years” , says the text, without indicating the author of the amendment.

The report approved this Tuesday (6th) by the Senate’s CCJ (Constitution and Justice Commission), on the agenda of this Wednesday’s (7th) plenary session, expands the spending ceiling for inclusion of Bolsa Família for a period of two years and provides for a fiscal impact of BRL 145 billion annually in 2023 and 2024.

The PEC provides for an additional BRL 23 billion for investments outside the cap in case of extraordinary revenue collection. As there is a loophole for the proposal to also make room in the 2022 Budget, there is room for the Bolsonaro government to release blocked parliamentary amendments.

The party of president-elect Luiz Inácio Lula da Silva (PT) hopes to be able to approve the text in two rounds in the Senate plenary this Wednesday. However, deputies allied with the mayor, Arthur Lira (PP-AL), claim that the version under analysis by the Senate needs to undergo adjustments.

There are criticisms, for example, of the authorized amount (R$ 168 billion). PT leaders, however, say that there are no plans to change the PEC already in the Senate, and that they prefer to negotiate with the deputies when the text arrives in the Chamber.