The government insists on a tax increase for companies, the Senate may vote on the payroll tax compensations bill, and a leaked audio recording worsens Bolsonaro’s legal situation

BRAZIL POLITICS - Report 16 Jul 2024 by Murillo de Aragão and Cristiano Noronha

Yesterday, after a meeting between President Lula, ministers, and government leaders in Congress, it was decided that the government will insist on an increase of up to 1% in the CSLL for companies. According to the Minister of Institutional Relations, the measure is on the table. The compensation measures for the payroll tax exemption are on the Senate's agenda for today, although there is still no agreement. The Senate President, Rodrigo Pacheco (PSD-MG), is expected to meet with leaders to try to reach an agreement. A recording of a meeting at the Planalto Palace held in August 2020 was released, showing the then-President willing to talk to the heads of the Federal Revenue Service and Serpro—the state-owned company that stores tax data—in the context of discussing the annulment of the "rachadinha" investigations against Senator Flávio Bolsonaro (PL-RJ). Rachadinhas are a system of embezzlement in which an employee returns part of his/her salary to the employer.

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