Deputies vote to overturn Bolsonaro’s veto on payroll tax relief; the text goes to the Senate | Politics

430 deputies voted to revoke the veto, another 33 opposed it and there was one abstention.

Due to the pandemic, the sessions of the National Congress are held separately. That is why the deputies voted Bolsonaro’s veto before the senators, who have a session scheduled for 4 in the afternoon this Wednesday.

Bolsonaro in July vetoed the provision that extended the tax exemption for companies linked to 17 sectors until the end of 2021, which include call centers, communications, information technology, transportation, civil construction, textiles, among others.

Nowadays, companies in these 17 sectors employ more than 6 million people.

Although the excerpt from the exemption has been vetoed, the parliamentarians have the last word. The deputies and senators can revoke the veto of the president and restore the text sent for sanction.

The model allows companies to choose to contribute to Social Security with a percentage ranging from 1% to 4.5% of gross income instead of collecting 20% ​​on the payroll.

Current law provides for an extension of the exemption until the end of 2020. If the Senate confirms the decision of the deputies and annuls the veto, the tax regime will be extended until the end of 2021.

The measure was included during the processing of a project that instituted an emergency work maintenance program. Other points of this law were also vetoed and will still be analyzed by the deputies.

The vote was postponed for several months by the government, which was trying to reach an agreement to compensate for the overturning of the veto, which was taken for granted.

The Minister of Economy, Paulo Guedes, even suggested the creation of a new tax as a counterpart to the extension of the exemption. The proposal generated negative repercussions among parliamentarians.

Last week, he went on to say that without the creation of a new tax, the discussion on payroll relief could not continue.