Provisional Measure 834/2018, which extends the period of adhesion to the Rural Tax Regularization Program (PRR) until October 30 of this year, was extended by the National Congress for another 60 days. The MP was due to expire on October 11. It now expires on October 10, 2018. The extension was published on Thursday (09) in the Federal Official Gazette. The program refinances the debt of rural producers with the Assistance to the Rural Worker (Funrural).
For the president of the Parliamentary Front of Agriculture (FPA), Ms. Tereza Cristina (DEM-MS), the extension was fundamental so that the MP did not lose its validity and, consequently, the adhesion deadline until October 30, already conquered by the approval of the measure, in May this year. “This gives security to farmers and ensures that the deadlines will be protected for joining the refinancing program,” the president said. MP is still waiting for the Joint Commission to be installed in the National Congress. At the time, the Measure amended Law 13606/2018, to extend the period of adhesion to the PRR, which would end on May 30, 2018 until October 30, 2018.
Among the main items guaranteed by Law 13606/2018, are the reduction of 100% of fines and legal charges; when the producer pays the tax at various stages in the chain; and the reduction of the tax rate from 2.5% to 1.7% for rural legal entities. “It was a 40% reduction in the rate of contribution assured to rural producers,” recalled Ms. Tereza Cristina.
Another Provisional Measure was also extended until October 10 by the National Congress on Thursday (09) and published in the Official Gazette of the Union. It is the 835/2018, which authorized poultry and pork producers and processing industries of the country’s animal feed immediate access to corn grain stocks of Companhia Nacional de Abastecimento (Conab). The measure was adopted in an emergency. The sector was affected by the truckers’ strike at the end of May, and several animals died for lack of ration.
Understand Funrural Refis
The Rural Tax Regularization Program (PRR), the so-called Refis Rural, was created in the midst of a legal impasse regarding the legality of the collection of Funrural. The contribution was considered unconstitutional in 2011 by the Federal Supreme Court (STF), but the same court went back in March 2017 and declared the constitutional charge. Since then, many rural producers have stopped paying the social security contribution backed by the Supreme Court’s decision.
On May 23 of this year, by 7 votes to 3, the Federal Supreme Court (STF) reaffirmed, in a new trial, the constitutionality of the contribution to Funrural. In this way, the Fund’s liabilities continue to exist, as well as the collection of social security charges. The Supreme Court decision was one of the items that still brought legal insecurity to farmers.
This text was translated by machine from Brazilian Portuguese.