by Edson Sardinha
President Jair Bolsonaro sanctioned the law extending for five years tax benefits for companies installed in the areas of the development superintendents of the Amazon (Sudam) and the Northeast (Sudene), but veed the extension of the program to States of Center-west, included by parliamentarians during the procedure of the bill in Congress.
The veto, recommended by the Ministers of Economics, Paulo Guedes, and Regional development, Gustavo Canuto, prevents the government from opening R $6.8 billion in waivers between 2019 and 2020, according to estimates from the IRS. Goiás, Mato Grosso and Mato Grosso do Sul are covered by the Midwest Development Superintendence (SUDECO).
In the justification of the veto, the government claims that the Budget Guidelines Act (LDO) of 2019 did not consider the loss of revenue resulting from the extension of tax benefits to Sudeco. "Similarly, the project is not accompanied by an increase in compensatory revenue and a triennial estimate of the budgetary-financial impact as determined by the current legislation", argues Bolsonaro.
The proposal amends the provisional measure 2.199-14, in force since 2001, to extend from 2018 to 2023 the deadline for companies with projects approved by Sudam and Sudene to be entitled to a reduction of 75% of income tax (IR) calculated based on profit. The deadline had already been extended by 2012 until December 31, 2018. By the new law, companies that have projects approved from 2019 can enjoy the benefit for ten years.
Atomic bomb
In the vote, on December 11, the leader of the PSL in the chamber, Deputy Waldir (GO), protested against the inclusion of Sudeco. "Parliamentarians who agree to vote on this atomic bomb for public accounts will surely be tainted," the congressman said while trying unsuccessfully to bar the vote. "They're going to give the next government a busted country, no conditions to administer," he regreted.
At the time, as the text could be sanctioned by Michel Temer or by Jair Bolsonaro, the mayor, Rodrigo Maia (DEM-RJ), suggested that one of the two would veto the extension of the benefit to the States of the Midwest.
See the full of the sanctioned law and the exposition of the reasons for the veto:
"Law No. 13,799, of January 3, 2019
Amends provisional measure no 2.199-14, of 24 August 2001, to set new deadline for the approval of projects benefited with tax incentives for reduction and reinvestment of income tax and additional in the areas of operation of the Superintendence of the Development of the Northeast (Sudene) and the Superintendence of the development of the Amazon (Sudam), and Law No. 8,167, of January 16, 1991, to dispose of deposits for reinvestment made by companies in operation in the areas of activity of Sudene and Sudam and extends both benefits to the area of operation of the Midwest Development Superintendence (SUDECO).
P r e S I d e N T e D a r e P Ú B L i C a
I know that the National Congress decrees and I sanction the following law:
Art. 1st the Arts. 1st and 3rd of the provisional Measure No. 2.199, of 24 August 2001, shall be in force with the following amendments:
Art. 1. Without prejudice to the other rules in force applicable to the matter, from the calendar year of 2000, legal persons who have a protocolized project and approved by 31 December 2023 for installation, expansion, modernization or diversification, framed In sectors of the economy considered, in the Act of the executive branch, priorities for regional development, in the areas of operation of the Northeast Development Superintendence (Sudene) and the Superintendence of the development of the Amazon (Sudam), will have The right to a reduction of 75% (75%) of income tax and additional calculated on the basis of the profit of the holding.
………………………………………………………………………………………………………………….
§ 10. (Vetado). " NR
Art. 3. Without prejudice to the other rules in force on the matter, the percentage of 30% (30%) provided for in item I DOCAPUTDO Art shall be maintained until 31 December 2023. 2nd of Law No. 9,532, of December 10, 1997, for enterprises of the sectors of the economy that will be considered, in the Act of the executive branch, priority for regional development. " NR
Art. 2nd Art. 19 of Law No. 8,167, of January 16, 1991, takes effect with the following amendments:
Art. 19. ……………………………………………………………………………………………………
………………………………………………………………………………………………………………….
§ 4 for undertakings which have deposits made more than five (5) years ago and do not have a project submitted to Sudene or Sudam until 31 December 2018, the funds for reinvestment of income tax, excluding the share of own resources , will be reversed in favour of the Union.
§ 5 the companies with reinvestment projects of income tax approved by sudene or Sudam may plead up to 50% (50%) of the amounts deposited for investment in working capital, provided that the remaining percentage is destined for Acquisition of new machinery and equipment that are part of the production process.
§ 6 (Vetado).
§ 7 (Vetado). " NR
Art. 3rd this law enters into force on the date of its publication.
Brasilia, January 3, 2019; 198 º of Independence and 131 º of the Republic.
Jayesh Balu
Paul George
James Campbell
Mr President of the Federal Senate,
I communicate to Your Excellency that, in accordance with § 1 of art. 66 of the Constitution, I decided to partially veto, due to the public interest, the Bill no 10,160, of 2018 (No. 656/15 in the Federal Senate), which "amends provisional measure no 2.199-14 of August 24, 2001, to set new deadline for the approval of Projects benefited from tax incentives for reduction and reinvestment of income tax and additional in the areas of operation of the superintendence of development of the Northeast (Sudene) and the Superintendence of the development of the Amazon (Sudam), and the Law n º 8,167 of January 16, 1991, to dispose of the reinvestment deposits made by the companies in operation in the areas of Sudene and sudam operations; and extends both benefits to the area of performance of the Midwest Development Superintendence (SUDECO). "
Heard, the Ministry of Economics manifested itself by veto to the following devices:
§ 10 of art. 1st of Provisional Measure No. 2.199-14, of August 24, 2001, amended by Art. 1st, and § § 6th and 7th of art. 19 of Law No. 8,167, of January 16, 1991, altered by art. 2nd of the Bill
"§ 10. The reduction of 75% (75%) referred to in this article applies also to projects of installation, expansion, modernization or diversification in the area of operation of the center-West Development Superintendence (Sudeco), with the exception of Federal District. "
"§ 6 The provisions of this article also apply to companies that have industrial and agro-industrial ventures operating in the area of the development Superintendence of the Midwest (Sudeco), with the exception of the Federal district.
§ 7 in the case provided for in § 6 of this article, companies may deposit the corresponding funds in Banco do Brasil S.A. "
Reasons for the vetoes
"The granting of tax dishoneration has restrictions stipulated in supplementary Law No. 101, of May 4, 2000-Tax Liability Law (LRF), and in Law No. 13,473, of August 8, 2017-Law of budget guidelines (LDO) for the exercise of 2018. They discipline that such measures should prioritize the reduction of renunciation, the increase in revenue and set schedule for reducing the benefit, so that the total waiver of the revenue does not exceed, in ten years, 2% of the gross domestic product. Furthermore, the collection at Ldo 2019 did not consider the loss of revenue resulting from the extension of benefits to Sudeco. Similarly, the project is not accompanied by an increase in compensatory revenue and a triennial estimate of the budgetary-financial impact as determined by the current legislation. "
These, Mr President, are the reasons that led me to veto the aforementioned devices of the project in question, which I now submit to the high appreciation of the members of the National Congress. "
Source: www.congressoemfoco.uol.com.br
