The lawyers for the New Party, in the initial petition, went as far as to characterize the action of the President of the Republic as a dictatorial attitude, when trying to modify, in the same week, the expressed will of the majority of the 584 parliamentarians on the issue.
The production sector also expressed its resistance to MP 1202/23 in a statement signed by organizations such as the Brazilian Agriculture and Livestock Confederation (CNA), the National Confederation of Trade in Goods, Services and Tourism (CNC), the National Confederation of Industry (CNI) and the National Confederation of Transport (CNT). In the statement, the entities expressed surprise and dissatisfaction with the tax refund actions.
The entities' objection focuses on the government's strategy of cyprus mobile database enacting the provisional measure without prior consultation with the productive sector . They argue that the re-taxation of payroll taxes will result in an increase in employment spending in Brazil and will further affect the competitiveness of industry and commerce in comparison to imports.
The entities also point out that MP 1202, from an economic point of view, contradicts the recent decisions of the National Congress, which, on two occasions in 2023, opted to maintain the payroll tax exemption, including overturning the presidential veto, clearly evidencing a political will against revocation.
Following the Executive's decision, opposition members of parliament are calling for the return of the provisional measure, claiming that Congress had already decided on the matter. Now, the president of the Senate, Rodrigo Pacheco, is seeking a conciliatory solution, even during the parliamentary recess. However, he has already stated that the tax exemption should remain in effect .
According to Pacheco, the path to be followed to resolve the issue is that the government should revoke the part of the MP that determines the gradual re-taxation of the payroll, maintaining the decision of Congress.
The discussion also covers other topics addressed by the MP, such as the cancellation of the Emergency Program for the Recovery of the Events Sector (Perse) and the monthly ceiling for the compensation of tax credits.
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