Understand the MP on the re-taxation of payroll taxes
Posted: Thu Feb 20, 2025 3:55 am
On the last business day of 2023, the federal government issued Provisional Measure (MP) 1,202/23, better known as the MP on the re-taxation of payroll taxes , which brought with it significant changes to the economic scenario, especially with regard to the gradual re-taxation of payroll taxes for 17 productive sectors, starting on April 1, 2024.
This measure, which is part of the government's strategies to eliminate the deficit in public accounts, has generated intense debates, adverse reactions from various sectors and highlights the complexities of the relationship between the Executive and Legislative branches.
Seen as one of the biggest disagreements between the National belize mobile database Congress and the Lula government to date, members of the Chamber of Deputies and the Senate argue that the text should not be valid, since members of Congress have already decided to reduce payroll taxes for certain sectors of the economy.
On the other hand, Finance Minister Fernando Haddad argues that the payroll tax exemption will result in a high cost to the public coffers. Furthermore, the Ministry's team claims that there is no concrete evidence that not charging payroll taxes will contribute to the creation of new jobs.
But after all, what changes with the MP?
The details of the re-taxation
The Provisional Measure ends the Social Security Contribution on Gross Revenue (CPRB), established in 2011, which replaced taxes on companies' payroll. With the end of the contribution on revenue, payroll charges would return to their previous levels, that is, with a rate of 20%.
This measure, which is part of the government's strategies to eliminate the deficit in public accounts, has generated intense debates, adverse reactions from various sectors and highlights the complexities of the relationship between the Executive and Legislative branches.
Seen as one of the biggest disagreements between the National belize mobile database Congress and the Lula government to date, members of the Chamber of Deputies and the Senate argue that the text should not be valid, since members of Congress have already decided to reduce payroll taxes for certain sectors of the economy.
On the other hand, Finance Minister Fernando Haddad argues that the payroll tax exemption will result in a high cost to the public coffers. Furthermore, the Ministry's team claims that there is no concrete evidence that not charging payroll taxes will contribute to the creation of new jobs.
But after all, what changes with the MP?
The details of the re-taxation
The Provisional Measure ends the Social Security Contribution on Gross Revenue (CPRB), established in 2011, which replaced taxes on companies' payroll. With the end of the contribution on revenue, payroll charges would return to their previous levels, that is, with a rate of 20%.