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Civil construction opened 8,000 new jobs this year, even with the pandemic. But entrepreneurs are worried about next year. The sector is one of the 17 contemplated with the exemption of the tax on the payroll.
The measure allows companies to substitute the 20% social security contribution on wages for a rate, between 1% and 4.5%, on gross income.
The exemption ends at the end of this year. Congress extended the measure until the end of next year. But President Jair Bolsonaro vetoed it. Now, deputies and senators can revoke the veto.
The Brazilian chamber of civil construction warns of the urgency of the vote.
“We need a definition as soon as possible, because how do I contract a work today and I don’t know how much it will cost me next year? How do I play the works I’m putting out and how will my year cost me? Will I fire people and hire machines, because the machines will cost cheaper? I think this is a vital point in the process “, said José Carlos Martins, president of the Brazilian Chamber of the Construction Industry (CBIC).
The exemption covers the sectors that employ the most in the country. There are about six million workers. According to the employers, without the measure, layoffs will be inevitable.
“There are calculations that say that the number of new unemployed could go from 500 thousand to 1 million. Hence the importance of maintaining the payroll tax exemption until December 2021 ”, said the president of the Brazilian Association of Machinery and Equipment Industry. (Abimaq), José Velloso.
“If this veto is not revoked, unfortunately, in this recovery period, we will have new layoffs. The recovery that is in the last quarter of 2020 and, in the first half of 2021, will be hampered if we have a new payroll taxation” declared Haroldo Ferreira, executive president of the Brazilian Association of the Footwear Industry (Abicalçados).
In Congress, party leaders consider that they have a majority of votes to overturn the veto. This Monday morning, Senator Izalci Lucas (PSDB-DF), who is vice president of the government in the Senate, defended the vote as soon as possible.
“We will try to close the deal tomorrow in leadership. If we close a deal, she [a pauta] It is confirmed for Wednesday (9). Businesses should plan for next year. So we have to decide soon, ”Izalci declared.
Party leaders in the House of Representatives and the Senate will meet Tuesday to discuss the issue and push for a vote later this week. But, at the government’s request, Senate President Davi Alcolumbre (DEM-AP) said he would not have a session of Congress on Wednesday.
The leader of the government in Congress, Eduardo Gomes (MDB-TO), even canceled the meeting of Senate and House leaders. He said that the government agreed with the revocation of the veto, but defended that the vote is for next week.
Eduardo Gomes said that President Jair Bolsonaro must meet with representatives of the 17 sectors to, in compensation for the exemption, guarantee support for other projects, such as the tax reform.
“The Ministry of Economy itself, the government, understands that tax relief helps maintain vacancies at this very important moment in the Brazilian economy. What we want is a mature agreement, an agreement that also comes with support for the measures of recovery. that the federal government has already adjusted in the National Congress to be voted on in the next few days, “said the emedebista.
Senators criticize another postponement of the vote. The president vetoed the step more than a month ago.
“It is important that the president of the National Congress, Senator Davi Alcolumbre, be able to call the Congress meeting to consider the vetoes, especially the veto of the payroll exemption. We will have a very large drop in GDP this year. How to grow with a burden High tax? There is no condition, ”said Otto Alencar (PSD-BA), party leader in the Senate.
