Mauro Filho: with tax relief for municipalities, the Union’s deficit fell by more than R$400 million

Payroll relief for municipalities has contributed to reducing the Social Security deficit. The statement is from Ceará federal deputy Mauro Filho (PDT); The parliamentarian is a reference in macroeconomics in the National Congress. According to Maurothe loss fell by more than R$400 million in one month, according to data obtained from the Federal Revenue Service. To the EC OPINIONMauro highlighted that this occurred because municipalities were not paying contributions when the rate was set at 20%, but with the 8% defined by the exemption, many city halls started paying again. “For this reason, this R$280 billion hole had been created in the National Social Security Institute (INSS)”. This Thursday (25), Minister Cristiano Zanin, of the Federal Supreme Court (STF), granted an injunction to overturn the exemption of municipalities. The STF did 3-0 score this Friday to maintain the decision.

Mauro Filho says he went to the Federal Revenue to obtain information about the drop in the monthly deficit. According to him, with the application of the exemption to municipalities, the Union’s debt fell from R$1 billion to R$580 million per month. The data showed the reality until February. Mauro explains that this difference should decrease even further in March. “That’s when everyone will have paid,” she said.

ZANIN’S INJUNCTION DECISION AND VOTE IN THE STF

With the maintenance of the injunction granted by Zanin, the STF decided to elimination of payroll taxes in 17 sectors of the economy and certain municipalities by 2027. Zanin’s decision was motivated by an action filed by the Attorney General’s Office (AGU). In addition to him, Flávio Dino and Gilmar Mendes voted in the Court’s virtual plenary to maintain the suspension of the exemption. The electronic session runs until May 6th. By accepting AGU’s arguments, Minister Zanin understood that the approval of exemption by Congress did not indicate the financial impact on public accounts.

“The factual framework presented, including the issuance of subsequent provisional measures with the aim of reducing the imbalance in public accounts, indicates, in this preliminary judgment, that there is an urgency to avoid a true fiscal imbalance of billion-dollar proportions that will be difficult to resolve if control comes to be done only at the end of the judgment on the merits”, he explained.

In the action filed with the STF, the AGU maintained that the exemption was extended until 2027 by Congress “without establishing the financial impact of the tax waiver”. The Attorney General’s estimate, if the exemption continued, era of loss of revenue of R$ 10 billion annually. The petition was signed by President Lula (PT) by the Attorney General of the Union (AGU), Jorge Messias.

The topic has become one of the most discussed between the National Congress and the Lula Government, having passed through approval of a project in the Legislature, veto by the Executive, overturning of the veto and publication of a Provisional Measure (MP) that limited the exemption. The president of the Senate, Rodrigo Pacheco (PSD-MG), said this Friday that the Senate will appeal against the minister’s injunction.

In a press conference in the Senate this Friday, Pacheco stated that the position of the House is a position of “antagonism” to the decision. “We are, on the other side, trying to demonstrate our reasons, and it is up to the Federal Supreme Court to decide this. The Court’s decision must be respected, whatever the decision. I hope the Federal Supreme Court decides based on reality”, said the senator, highlighting that the Senate will appeal.