An agreement has been reached on municipalities' payroll tax exemption, the Working Group on Tax Reform regulation may be installed next week, and the STF should discuss the ADI on unjustified labor dismissals

BRAZIL POLITICS - Report 17 May 2024 by Murillo de Aragão and Cristiano Noronha

After a meeting with Senate President Rodrigo Pacheco (PSD-MG), Minister of Finance Fernando Haddad and Minister of Institutional Relations Alexandre Padilha announced an agreement on the payroll tax exemption for municipalities. It was agreed that the exemption for municipalities will be applied in 2024. Another important event for next week is the expected announcement by the president of the House, Arthur Lira (PSD-MG), of the installation of the Working Group on the Tax Reform regulation submitted to Congress by the Executive Office in April. On Thursday, there will be an important trial in the Supreme Federal Court (STF). The Court will once again analyze a Direct Act of Unconstitutionality (ADI) that questions the legality of Decree 2,100/1996, which announced Brazil's withdrawal from compliance with Convention 158 of the International Labor Organization (ILO), which prohibits unjustified dismissals.

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