The Brazilian Machinery and Equipment Industry Association (Abimaq) filed a Direct Action of Unconstitutionality (ADI) 7342 with the Federal Supreme Court (STF) to question the entry into force of the new contribution rates for the Social Integration and Public Servant Asset Formation Programs (PIS/Pasep) and the Contribution for Social Security Financing (Cofins).
Decree 11,374/2023, of the Presidency of the Republic, issued on the 1st, by revoking last year's decree and reestablishing the validity of Decree 8,426/2015, increased the PIS/Pasep rates from 0.33% to 0.65% and Cofins from 2% to 4% levied on financial income obtained by legal entities subject to the non-cumulative assessment regime, including income arising from operations carried out for hedging purposes.
For the entity, the changes violate the constitutional principle that establishes a 90-day deadline for the tax change to take effect (90-day prior notice). For this reason, the association requests that the provisions only come into effect from 3/4/2023. According to Abimaq, if this deadline is not met, there is a risk of a “flood” of lawsuits in each unit of the federation, due to a lack of legal certainty.
The action was distributed to Minister Ricardo Lewandowski.
Related process: ADI 7342
Source: https://portal.stf.jus.br/noticias/verNoticiaDetalhe.asp?idConteudo=501316&ori=1