Source: DCI (São Paulo - SP) - 17/05/2012

About to lose its validity, the Provisional Measure (MP) 556/2012 proposed by the Executive to deal with tax exemptions and relax the bidding rules of the World Cup and the PAC yesterday had its vote postponed once again. It is that, in addition to this controversial topic, the proposal also alters the Security Plan for Public Servants, which is why it is rejected by the opposition and has been a reason for disagreement among leaders.

The MP's rapporteur, deputy Jerônimo Goergen (PP-RS), as a good governor, included all the Planalto's requests to expand the simplified bidding system, the so-called Differentiated Bidding Regime (RDC) for the works of the Acceleration Program do Crescimento (PAC) and for the construction of schools, daycare centers, health posts and sports courts.

The amendment that extends the bidding rules of the RDC World Cup and the Olympics for PAC works was sent at the last minute by the government and was the item that generated the most controversy among parliamentarians. The MP wins on May 31; therefore, if it is not voted on in the House and Senate before that date, it will have no validity. And he cannot be the target of another MP this year.

MP 556 was created to deal with tax exemptions and contributions for five sectors. But, after the initiatives of parliamentarians and the government itself, it will change the taxation of 16 sectors and give prerogatives to the Ministry of Finance.

Celerity

The RDC eases the rules of the Bidding Law in order to make public works more agile. It allows, for example, integrated contracting, in which the government hires a single company for the entire work (from the project to the finish) for a single price, without additives. In the bidding law, design and construction are different stages.

In addition, Goergen stressed that he will reject two points from the original MP: the increase in the Cide ceiling for fuel alcohol and the end of the presumed credit for the domestic agricultural market. He argues that the two measures will impose an unnecessary increase in costs for biodiesel producers and the Brazilian agricultural sector. The rapporteur assured that the changes were negotiated with the government, which would be more interested in guaranteeing the expansion of the DRC.

"The government has guaranteed that there will be no highlights or vetoes of some of the proposals made," he said. Goergen argues that the DRC will speed up the construction of daycare centers announced by President Dilma Rousseff. "This will give efficiency to the works", he defended. He met with representatives of the DEM and most of the opposition MPs, who were previously critical of the DRC, defend the approval of the Provisional Measure in view that it benefits farmers and ranchers with reduced taxes.

This is just one of about 15 changes proposed by the rapporteur. He included in the text several exemptions to sectors such as the production of yerba mate, drought irrigation equipment, and cereal companies that sell soy for biodiesel, among others. "It is important to highlight the economic effects of these proposals," he said.

MP 556 allows PIS and Cofins discount only to the industry that exports products originating from agribusiness and that have already had tax benefits. MP 552, from December 1, had ended this discount for all industries. Before MP 552, all industrialists could obtain this discount.

The government intends to return to the situation prior to December last year, that is, all industries will be able to obtain the tax discount even if they have purchased products that have already had tax benefits. The cost for businessmen and consumers is lower, but the government pays the bill. In Goergen's negotiation with the government, it was decided that the overpaid tax between December 1 and the publication of the law will be returned to industrialists.

If Goergen says he has the support of the DEM, the PSDB does not. Bruno Araújo harshly criticized the government's amendment that expands a system that changes the Bidding Law to speed up construction. “It is serious because the Bidding Law, says the government, does not apply to your works. The government wants a shortcut in the law that tries to make up for its general disability ”, said the PSDB leader. The toucan also criticized the “smuggling” of the proposal. "The discussion takes place in line, hitchhiking in another MP," said Araújo.

Law becomes exception

For the leader of the PSDB, deputy Bruno Araújo (PE), the government is wrong in trying again to approve such a complex issue through a provisional measure. He also criticized the emptying of the Bidding Law (8.666 / 1993).

“Imposing the RDC now on all PAC works is to make the bidding law an exception. This measure is harmful to control, demoralizes the Law and, above all, demonstrates the weakness of the government, which does not assume the authorship of the proposal ”, he said. In Goergen's accounts, if MP 556 is not voted on soon, there will be no deadline for the Senate to analyze the text. Then it would lose its validity.