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On August 30, Brazil's lower house of Congress approved the main text for a project extending a payroll tax exemption for 17 economic sectors for another four years, Reuters reports.
The base text was approved by 430 votes against 17. However, the bill can still be changed by an amendment.
The exemption - set to expire on December 31 - reportedly covers many of the most labour-intensive sectors, such as civil construction, textile and footwear producers, transportation and communications firms, reducing their labour costs in order to retain jobs.
The payroll tax relief replaces the employer's social security contribution of 20 per cent of payroll with rates ranging from 1 per cent to 4.5 per cent of gross revenue.
The proposal will now return for Senate consideration as a result of modifications introduced reducing municipalities' pension contributions to 8 per cent to 18 per cent of each city's Gross Domestic Product (GDP) from 20 per cent.
The Senate's version reportedly put forward an 8 per cent rate, applicable solely to smaller cities, a change opposed by the Finance Ministry.
Source: Reuters
On August 30, Brazil's lower house of Congress approved the main text for a project extending a payroll tax exemption for 17 economic sectors for another four years, Reuters reports.
The base text was approved by 430 votes against 17. However, the bill can still be changed by an amendment.
The exemption - set to expire on December 31 - reportedly covers many of the most labour-intensive sectors, such as civil construction, textile and footwear producers, transportation and communications firms, reducing their labour costs in order to retain jobs.
The payroll tax relief replaces the employer's social security contribution of 20 per cent of payroll with rates ranging from 1 per cent to 4.5 per cent of gross revenue.
The proposal will now return for Senate consideration as a result of modifications introduced reducing municipalities' pension contributions to 8 per cent to 18 per cent of each city's Gross Domestic Product (GDP) from 20 per cent.
The Senate's version reportedly put forward an 8 per cent rate, applicable solely to smaller cities, a change opposed by the Finance Ministry.
Source: Reuters