Government should raise bank tax to pay Simples Refis

​The Jair Bolsonaro (PL) government must increase taxation on banks to compensate for the waiver of revenue arising from the debt renegotiation program of MEIs (individual microentrepreneurs) and small companies of Simples Nacional.

The CSLL (Social Contribution on Net Income) of banks is currently at 20%, but should rise to a level between 21% and 23%, according to a government source interviewed by sheet.

The elevation must be implemented through MP (provisional measure). Although this instrument is effective immediately, the increase in the tax must comply with the ninety-day principle – therefore, the new rates would only apply after 90 days.

The law that creates the Relp (Program for Rescheduling Payment of Debts in the Scope of Simple Nacional), as the Refis focused on small businesses became known, was vetoed by the president in December 2021 precisely because of the absence of compensation measures, but the National Congress overrode the veto in March.

Bolsonaro was against vetoing the measure, but he answered the Ministry of Economy and the AGU (Advocacy-General of the Union), who pointed out the risk of violating the LRF (Fiscal Responsibility Law) and provisions of the LDO (Budget Guidelines Law) and the Constitution.

The Federal Revenue calculates a waiver close to R$ 500 million this year, due to discounts provided for in the negotiation. The LRF requires that this amount be offset with measures to increase revenues in the same proportion.

The government estimates that up to R$ 50 billion in debts can be negotiated in Refis do Simples.

At the end of the year, the forecast was for a waiver close to R$ 600 million in 2022, but the value fell, because the impasse over the veto delayed the effectiveness of the measure. With this, the waiver will take place in a smaller number of months.

The increase in the banks’ CSLL has frequently figured on the government’s menu of measures to offset tax cuts in other areas.

In March last year, for example, Bolsonaro even raised the CSLL on financial institutions from 20% to 25%. At the time, the measure offset the decision to zero federal taxes on diesel and cooking gas and was valid until December 31, 2021.

Then, the government considered raising it again to 25% to compensate for the payroll tax exemption for 17 sectors of the economy – a law sanctioned by Bolsonaro on the last day of 2021. But the extension of the measure came into force without compensation, and the situation is being analyzed by the TCU (Union Court of Auditors).

Refis allows companies registered in Simples and MEIs to pay their debts in up to 180 months (15 years). Relp determines minimum installments of BRL 300 for those who join, with the exception of MEIs, who can pay at least BRL 50 per month.

Micro and small companies would pay a down payment of 1% to 12.5% ​​of the debt value, depending on the degree of loss of income during the crisis caused by the Covid-19 pandemic.

In addition, they would have discounts between 65% and 90% on interest and fines and from 75% to 100% on charges and legal fees, also according to the impact of the crisis on their cash.

As the full veto was overturned by Congress, even companies that had revenue gains in the pandemic will be able to join the renegotiation.

The regulation of the program should be announced by the government this Friday (1st).

The measure was created as a response to the difficulties faced by small businesses during the Covid-19 crisis. Although the Ministry of Economy suggested the veto of the measure, during the pandemic, Minister Paulo Guedes (Economy) himself spoke about the possibility of these companies receiving an installment of tax obligations.

As shown by sheet in the past month, about a third of small businesses are struggling to pay off debt.

More than 60% of them have sought loans since the beginning of the Covid crisis and almost a third of the total (28%) are in default, according to a survey by Sebrae and FGV (Fundação Getulio Vargas) carried out between November and December (the most recent available).

The difficulties are mainly with the increase in costs (with goods, fuel, rent and energy, for example), cited by 50% of respondents. Next are the lack of customers (25%) and loan debts (10%).