Exemption project leaves CPMF out and sets a definitive solution for the next government

The bill that extends the exemption from payroll for 17 sectors will leave out the provision for a tax along the lines of the former CPMF (Provisional Contribution on Financial Transactions), a possibility that had been reinserted in discussions between the government and Congress about two years ago. months.

The proposal’s rapporteur, Deputy Jerônimo Goergen (PP-RS), says that a definitive solution to cut taxes on the payroll in a broad (and not just sectorial) manner –as Minister Paulo Guedes (Economy) wanted– must only be achieved from 2023, when the term of the next elected President of the Republic begins.

Goergen says that his bill will provide for two years of tax relief – instead of the five years originally planned by him – based on the bet that the next government will resolve the matter through a tax reform.

“We were the ones who asked for two years [ao governo, que anunciou o prazo nesta semana], because in the last year of this government nothing happens and in the first year of the future government neither. We are betting that the next government will resolve the tax reform and remove this cost from the payroll, which is unfair in Brazil,” says Goergen to sheet.

He claims that there is no way to implement a new tax. “It doesn’t fit CPMF or microtax, it doesn’t have support. We imagine a definitive solution to the problem, only in the next government”, he says.

According to the deputy, the president of the CCJ (Committee on Constitution and Justice) of the Chamber, deputy Bia Kicis (PSL-DF), will include the topic on the agenda for next Wednesday (17th).

Goergen claims that the advance of tax relief for the 17 sectors, previously rejected by the Ministry of Economy, was possible thanks to a negotiation with Guedes.

In exchange for the minister’s support for the project, the deputy voted in favor of the PEC (proposed amendment to the Constitution) of the Precatório, which circumvents the spending ceiling and is in the government’s interest – interested in releasing expenses next year. The PEC was approved in two rounds in the Chamber and will now be analyzed by the Senate.

As informed to sheet, the government and Congress discussed the exemption from the payroll in September and, as a way of receiving approval from Guedes, the creation of a digital tax in the mold of the extinct CPMF began to be studied.

With the new tax, it would be possible to extend to more companies the benefit provided for in the Chamber project to the 17 segments (which include sectors such as communication, civil construction and footwear).

Guedes and his team were against the proposal for the 17 sectors because, among other reasons, it has a very high cost compared to the number of jobs preserved — a thesis corroborated by analysts. In addition, the team defends that the exemption would have to apply to everyone – not to a specific group of companies.

They heard from the minister that the new tax was a great idea and, with the approval, scheduled a series of meetings and dinners with businessmen to measure the temperature on the subject.

In the private sector, the re-creation of the CPMF to relieve the payroll is defended by the services sector and one of the biggest enthusiasts is the businessman Flávio Rocha (owner of Riachuelo). The CNS (National Confederation of Services), which represents companies in the segment, also defends the idea.

On the other hand, other sectors are resistant to the proposal, such as industrial and banking.

Guedes has always advocated implementing a new tax as a way to replace the taxation on wages, which he calls a weapon of mass job destruction.

A few months before the tax break talks, Guedes was still citing the new tax as one of the parts of his planned five-chapter tax reform.

Even with Guedes’ resistance, the government was already showing signs that it would give in to the exemption. This occurred amid the concern of the Palácio do Planalto with the possible loss of more support among the business community and also with the fear of the effects on unemployment.

“We decided to extend the issue of payroll exemption for another two years, including [da] my dear press. Nobody was left out, not even you [jornalistas]”, said President Jair Bolsonaro, in a critical tone to the press, last Thursday (11).

“This has to do with maintaining jobs. We are in a post-pandemic situation, and we must help these sectors. In other words, whoever is elected in 22 will have 23 all to resolve this issue of tax relief”, stated the president .