Molica: By PEC dos Precatório, the government changes its mind about tax exemption

In Freedom of Opinion this Friday (12), journalist Fernando Molica analyzed the extension of the payroll exemption for another two years granted by the federal government. In Congress, the extension of this measure until 2026 is already being analyzed.

After President Jair Bolsonaro’s announcement about the exemption, businessmen who participated with him in the meeting at Planalto Palace are planning a mobilization in the Senate for the approval of the PEC dos Precatório.

“The government was against this decision until the end of October and articulated the National Congress to stop the extension of this exemption”, said Molica.

“What made the president change his mind? Unemployment; low popularity; difficulties in the business sector, which generally supported Jair Bolsonaro. There is the possible candidacy of Sergio Moro and he has the difficulty of approving the PEC dos Precatórios”, he added.

“This exemption started during the Dilma government. There were not 17 sectors, there were 56. Entrepreneurs in these sectors, instead of contributing 20% ​​of their payroll to Social Security, pay from 1% to 4% of their gross sales. It’s an exchange and they pay much less — however, this results in an annual loss of R$ 8 billion”, continued the journalist.

“Jobs in Brazil are very expensive. The entrepreneur pays a lot to hire an employee and this generates other forms of hiring. Rather, a measure to reduce the cost of employment would be needed, but it would be better if it were a general, broader way to benefit companies in general. When you work in sectors, you create a subsidy, which, later, is very difficult to remove”, he said.

Freedom of Opinion had the participation of Fernando Molica and Ricardo Baronovsky. The picture airs daily on CNN.

The opinions expressed in this publication do not necessarily reflect the position of the CNN or its employees.

(Posted by: André Rigue)