Lula sanctions tax package bill on BPC, with two vetoes

President Luiz Inácio Lula da Silva sanctioned this Friday, the 27th, the bill that, among other points, changes rules for granting the Continuous Payment Benefit (BPC), with two vetoes.

The text, published in an extraordinary edition of Official Gazette of the Union (DOU), is one of the legislative measures of the federal government’s so-called fiscal package, prepared by the team of Finance Minister, Fernando Haddad, to contain expenses. Lula vetoed the section requiring attestation of a moderate or severe disability, in accordance with the regulations, for the administrative or judicial granting of the benefit.

This veto was already expected. During the discussion of the project in the Senate, senators asked for the section to be removed. To prevent the project from returning for analysis by the Chamber, as the processing took place in a tight manner in both Houses in the last week before the parliamentary recess, the PL’s rapporteur in the Senate, Rogério Carvalho (PT-SE), suggested dividing the paragraphs of the text to allow President Luiz Inácio Lula da Silva to veto the item specifically on the degree of disability. At the time, the government leader in the Senate, Jaques Wagner (PT-BA), assured that the Executive would commit to the veto.

“The legislative proposal goes against the public interest, as it could bring legal uncertainty in relation to the granting of benefits”, argues the Presidency of the Republic in the veto published in the DOU.

The other veto imposed by Lula nullifies the revocation foreseen by the bill of a provision of the Bolsa Família Program Law on the re-entry of beneficiaries. “The legislative proposal goes against the public interest, as it could create legal uncertainty in relation to the eligibility rules for re-entering the Bolsa Família Program”, says the reason for the veto.

The spending cut package sent by the federal government to Congress had its vote and approval completed by parliamentarians on December 20th. Initially, the government estimated an economic impact of R$71.9 billion over two years with the measures. After the changes made by Congress, however, the potential was reduced to R$70 billion.

The Executive sent a package to Congress containing three proposals: a bill, which changes the minimum wage rule and establishes changes to the Continuous Payment Benefit (BPC); a complementary bill, which creates “reinforcements” to the fiscal framework and provides rules for parliamentary amendments; and a Proposed Amendment to the Constitution (PEC), which brings changes to the salary bonus and Fundeb, regulates the so-called “super salaries”, extends the Untying of Union Revenues (DRU) and authorizes budgetary adjustments in subsidies and grants.

The PEC was promulgated on December 20th by Congress during a formal session. Today, the BPC Bill was sanctioned by President Luiz Inácio Lula da Silva. The package’s complementary bill still needs to be sanctioned, which should happen in the coming days.