Congress examines vetoes to Funrural Refis

The National Congress meets on Tuesday (03) to analyze the 16 presidential vetoes that are on the joint agenda of deputies and senators. According to Congress president Eunício Oliveira (MDB-CE), parliamentarians should focus on the analysis of two projects that have an economic impact on the public coffers: the Refis of micro and small enterprises and Funrural.

According to Agência Brasil, the proposal that gives discounts to rural producers to pay their social security debts has the support of the Parliamentary Front of Agriculture (FPA), which wants to overturn the vetoes. The main items rejected by the president are the one that grants full pardon of the fines and charges and that reduces the social security contributions of the farmers who run companies.

Funrural Refis

The so-called Refis Rural was created in the midst of a legal impasse regarding the legality of the collection of the Rural Worker Assistance Fund (Funrural). The contribution was considered unconstitutional in 2011 by the Federal Supreme Court, but the Court reversed in March last year. Farmers have already secured a series of court injunctions not to contribute to the fund.

In vetoing the proposal, Temer argued that parts of the bill were at odds with the proposed tax adjustment by the government. Another allegation is that the installment payment is a disrespect to the producers who paid the debts on time and could unduly stimulate the “moral hazard”.

According to the bill, the settlement of debts will be granted upon the immediate payment of a 2.5% rate of the debt amount in up to two equal monthly installments. The remainder can be split up to 176 times. At the end of February, parliamentarians approved an interim measure sent by the government that extends membership to Funrural’s Refis for April 30.

In addition to the 100% forgiveness of fines, the project originally provided for a reduction of employers’ contributions to Social Security, from 2.5% to 1.7% of revenues from marketing the products, but this device was also vetoed. President of the Parliamentary Front of Agriculture, Congresswoman Tereza Cristina (DEM-MS), who was rapporteur for the bill in the House, said she will work to reverse some vetoes.