Bolsonaro raises tax on banks to fund Simple Nacional debt renegotiation

President Jair Bolsonaro (PL) edited this Thursday (28) an MP (provisional measure) that raises taxation on banks and financial institutions to fund the opening of the debt renegotiation program of Simples Nacional companies.

as showed the Sheet, the CSLL (Social Contribution on Net Income) of banks will rise from 20% to 21% by the end of this year. The rate of other financial institutions will increase from 15% to 16%.

The measure was published in an extra edition of the Official Gazette and, even before publication, was already being criticized by banks for increasing the tax burden on these institutions at a time of rising interest rates and increasing credit.

The MP is effective immediately, but the tax increase will only take effect 90 days from now, due to the so-called novena (minimum advance notice for an increase in this type of contribution).

Bolsonaro also issued a decree to cut the benefit of soda syrups produced in the Manaus Free Trade Zone.

Companies that produce syrup for soft drinks and are located in the region are exempt from IPI (Imposto sobre Produtos Industrializados), but even without paying taxes, they generate tax credits for large bottling companies that purchase the concentrate. The benefit is equivalent to the amount of the soda syrup tax.

Until the end of February, the rate was 8%, but thanks to the 25% linear tax cut, promoted by the Ministry of Economy, it had already fallen to 6%. Now, the rate has been zeroed. The lower this percentage, the fewer credits large companies have to deduct their taxes.

The cut of the tax benefit of soft drinks displeases the bench of parliamentarians from Amazonas, with whom the government has already been fighting an arm wrestling due to the reduction of the IPI. The measure removes the competitiveness of products from the Free Zone, which are already exempt from the tax.

The tax increases are necessary to compensate for a waiver of about R$500 million with the Relp (Program for Rescheduling Payment of Debts in the Scope of Simples Nacional), as the Refis focused on small businesses became known.

The law was enacted on March 17, after the National Congress overturned a veto by Bolsonaro on the measure. The veto was necessary precisely because the program had been approved with no provision for waiver in the Budget or a compensatory measure.

The membership deadline would initially run until April 29, but the program took a while to be regulated by the government in the wake of political difficulties in implementing the offsets. This delay had been causing concern among small businessmen and parliamentarians linked to the sector.

Last week, the Simples Nacional Management Committee approved the extension of the deadline for MEIs (individual microentrepreneurs) and small Simples Nacional companies to renegotiate their tax debts with the Union, given the delay in opening the program.

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

The program allows companies registered in Simples and MEIs to pay their debts in up to 180 months (15 years). The negotiation must respect the minimum amount of R$ 300 for the installment, with the exception of MEIs, which may pay at least R$ 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 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.