Congress enacts PEC on Benefits

The National Congress enacted, in the early evening of this Thursday (14), the constitutional amendment arising from the PEC of Benefits, approved this Wednesday (13) by the Chamber of Deputies.

President Jair Bolsonaro (PL) left the Planalto on foot and crossed the street that separates the headquarters of the Federal Executive and the Senate. He entered through one of the annexes of the Senate and, after walking inside the House, arrived at the plenary, where the session took place.

Bolsonaro sat at the Senate plenary table along with the president of Congress and the Senate, Rodrigo Pacheco (PSD-MG), and the president of the Chamber of Deputies, Arthur Lira (PP-AL).

Also present were the president of the Superior Court of Justice (STJ), Humberto Martins, government leaders in Parliament and state ministers, among other allies and assistants.

The Congress, however, was already empty, without many senators and federal deputies, as all the deliberative sessions for voting on matters before the parliamentary recess had already been held. Congressmen go on recess now and return in early August.

The Proposed Amendment to the Constitution will allow the government to spend over R$41.25 billion by the end of the year to increase social benefits, grant financial aid to truck drivers and taxi drivers, reinforce the purchase of food for people with low income and encourage the reduction of ethanol taxes.

This Wednesday, the Chamber concluded the vote on the proposal. The text was approved in the second round by 469 votes in favour, 17 against and 2 abstentions. 308 favorable votes were needed for approval.

The PEC did not change in relation to the text sent by the Senate. Of the BRL 41.25 billion, BRL 26 billion is planned to expand Auxílio Brasil, which now has a minimum amount of BRL 600 for each family, and BRL 1.05 billion for Auxílio Gás. The rest of the amount goes towards creating subsidies for truck drivers and taxi drivers, among other measures.

With the approval and enactment, the Auxílio Brasil, in the minimum amount of R$ 600, should start being paid to beneficiaries in August.

Understand what the PEC approved by Congress says

1 – Increases the Auxílio Brasil benefit by BRL 200 between August 1 and December 31, 2022. Therefore, the amount of the aid must increase from BRL 400 to BRL 600 in this period.

The forecast is that the measure will cost R$ 26 billion by the end of the year. The government’s intention is to use this amount to eliminate the current list of beneficiaries, estimated at almost 1.6 million families.

2 – Increase the value of the gas voucher so that the equivalent of a cylinder is paid every two months, which should allow the aid to reach about R$ 120. Officially, an amount corresponding to another 50% will be given. the average national reference price for a 13 kg bottle of cooking gas (liquefied petroleum gas).

The measure will be valid between July 1 and December 31, 2022. The estimated value of the measure is up to BRL 1.05 billion.

3 – Creates an aid of R$ 1 thousand for autonomous cargo carriers that were registered in the National Registry of Road Cargo Transporters until May 31, 2022, which should reach truck drivers, mostly. The aid will be granted between July 1 and December 31, 2022. The impact is estimated at BRL 5.4 billion.

4 – Creates an aid to registered professional taxi drivers, of a value yet to be defined. The total amount for this aid will be R$ 2 billion. The calculation of how much each taxi driver will receive and the amount of installments paid must be regulated by the Executive, considering the number of qualified beneficiaries.

The benefit will be granted between July 1 and December 31, 2022. To receive it, taxi drivers will need to present a document of permission to provide the service issued by the municipal or district government. Professionals registered until May 31 of this year will benefit.

5 – Grants assistance of R$ 2.5 billion until December 31, 2022 to help pay for the right to free access to the elderly in urban, semi-urban and metropolitan public transport provided for in the Elderly Statute. The amount will be transferred to the Union, states, the Federal District and municipalities.

6 – Grants aid in the total amount of R$ 3.8 billion only to states and the Federal District that grant ICMS tax credits, tax on goods and products, to producers or distributors of hydrated ethanol in their territory, in an amount equivalent to the value Received.

The objective is to reduce the tax burden on the hydrous ethanol production chain, in order to maintain a competitive differential in relation to gasoline. The proposal allows that, until December 31, 2022, the rate of taxes levied on gasoline can be zeroed, provided that the rate of the same tax levied on hydrous ethanol is also zeroed. The aid will be given in five monthly installments of up to BRL 760 million each, from August to December 2022.

7 – Grants a budget supplement of R$ 500 million to the Alimenta Brasil Program.

The Benefits PEC also provides for the recognition of the state of emergency in 2022 in the country. The measure seeks to protect the federal government against possible accusations of having disrespected the electoral law.

This is because the electoral legislation prohibits the free distribution of goods, values ​​or benefits by the public administration, except in cases of public calamity, state of emergency or social programs already in place in the year prior to the election.