The Supreme Federal Court (STF) has extended until September 11 the suspension of the process regarding the payroll tax relief for 17 sectors of the economy and certain municipalities. This extension was requested by the Federal Senate and the Office of the Attorney General (AGU) last Tuesday (16), with the aim of allowing the ongoing negotiations between the federal government and lawmakers to be concluded, focusing on an agreement regarding the financial compensation of the Union for the tax relief.
Justice Fachin’s decision continues the suspension initially ordered by Justice Cristiano Zanin on April 25. Zanin had granted an injunction suspending the tax relief due to the lack of indication of the financial impact on public accounts. Subsequently, Zanin accepted AGU’s request to suspend the tax relief for 60 days, providing a period for Congress and the government to negotiate the compensation.
Meanwhile, the President of the Senate announced the postponement of the vote on the proposal for compensating the losses, emphasizing the need for additional time to build a viable agreement. In his decision, Justice Fachin highlighted the importance of granting sufficient time for the government and lawmakers to reach a negotiated solution, emphasizing the joint effort of the Executive and Legislative branches, as well as civil society, in resolving this issue.