The president of the Bureau of the National Congress, Senator Rodrigo Pacheco, extended for 60 days the Provisional Measure (MP) 1.034/2021, which among other points, increases in 2021 the Social Contribution on Net Income (CSLL) of financial institutions to compensate for tax reduction on diesel and cooking gas. The act was published in the Official Gazette on Monday (26).

By decree published on March 1, President Jair Bolsonaro zeroed the contribution rates of PIS / Cofins that focus on the commercialization and import of diesel oil and cooking gas. In relation to diesel, the exemption is planned for the months of March and April. As far as cooking gas is about, it will be permanent.

THE MP increases the incidence of CSLL on banks between July and December 2021 from 15% to 25%. From 2022, the MP predicts that this tax will fall to 20%. The measure also increases the incidence of CSLL on credit unions between July and December of this year from 15% to 20%. From 2022, the tax will return to 15%.

The text also increased csll from 15% to 20% on other sectors of the financial system between July and December of this year: private insurance and capitalization legal entities; securities distributors; exchange and securities brokers; credit, financing and investment companies; real estate credit companies; credit card companies; leasing companies; and savings and loan associations. These sectors will be taxed again by 15% from 2022.

The measure limits the exemption of the Tax on Industrialized Products (IPI) between March and December 2021, when new vehicles are bought by people with physical, visual, severe or profound mental, or autistic disabilities. From 2022, the text provides that the total exemption of the IPI will return in the case of the purchase of vehicles by these persons.

The text also closes the Special Regime of the Chemical Industry (Reiq) from July. In order not to impact measures to combat covid-19, MP provides a presumed credit for companies manufacturing products intended for use in hospitals, clinics, doctors' offices and vaccination campaigns, which use in the manufacture of these products intake derived from the petrochemical industry, which, according to the government, should neutralize the effect of the end of Reiq for these industries , which will be in force until the end of 2025.