Congress overturns veto to port industry’s tax benefit

On Thursday, March 17, the Brazilian Congress overturned nine of the fourteen vetoes of President Jair Bolsonaro to PL 4.199/2020, the bill that created the Cabotage Stimulus Program, the so-called BR do Mar.

The vast majority of the Congress’ Lower Chamber voted in favor of overthrowing the vetoes; only six voted against it. In the Senate, all 59 voters supported overturning the presidential decision.

The lawmakers overturned Bolsonaro’s veto on Reporto, a special tax regime applied to the port industry. The preside claimed that the benefit would be unconstitutional and contrary to public interest since it would imply waiving revenue without “an estimate of the budgetary and financial impact it would cause” and without presenting any compensatory measures.

The veto to the changes in the Additional Freight for the Renewal of the Merchant Marine (AFRMM), which alters rules to calculate navigation freight rates, was also overturned.

The National Congress also overrode the veto to the Emergency Program for the Resumption of the Events Sector (Perse), providing financial aid to the events sector. Perse was sanctioned with vetoes by Bolsonaro in May last year. As a result, essential parts of the program were impacted, such as the five-year exemption from paying various taxes by companies in the sector.

Source: Congresso em Foco

To read the full original article, please go to:

https://congressoemfoco.uol.com.br/area/congresso-nacional/derrubado-veto-a-beneficio-do-setor-portuario/

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