The President of the Republic, Jair Bolsonaro (PL), sanctioned this Thursday (23) the bill that establishes a ceiling for the Tax on the Circulation of Goods and Services (ICMS) on fuels, with a series of vetoes to the tax model. financial compensation to states due to tax rate limitation.
One of the vetoes that should cause the most reaction from the National Congress is the passage that guarantees the minimum constitutional transfer of resources to education, health and the Fund for the Maintenance and Development of Basic Education and for the Valorization of Education Professionals (Fundeb) compared to with the situation in force before the law.
The project approved by Congress provided that the Union would compensate the other entities of the Federation so that these constitutional minimums would have the same resources as before. It also provided that the states, the Federal District and the municipalities benefiting from the financial compensation by the Union should maintain the proportional execution of these minimum constitutional expenses.
These sections were approved by parliamentarians because, with the reduction of ICMS, the states believe that they will lose in revenue and, consequently, will not have all the money to guarantee the minimum of resources to these three areas.
In the justification for the veto, Bolsonaro states that, “despite the merits of the proposal, the legislative proposal is contrary to the public interest, by allowing the creation of public expenditure of a continuous nature”.
It also criticizes that, according to the text of Congress, “it would create compensation for the Union and expenses for states and municipalities that could increase possible financial imbalances”.
One of the authors of the project, Danilo Forte (União Brasil-CE), stated that Congress should review part of the vetoes in a future joint session of the Chamber and Senate. The next session of Congress is scheduled for July 5, but it is not yet defined whether these vetoes will already be analyzed.
Source: CNN Brasil