Provisional measure extends the deadline for joining Refis do Funrural to October 30th

The deadline for joining the Rural Tax Regularization Program (PRR), which refinances rural producers' debts arising from employees' non-payment of social security contributions, has been postponed once again. The Official Gazette of the Union published this Wednesday (30) Provisional Measure 834/18, which extends the deadline until October 30. The provisional measure will now be analyzed in the National Congress.

Also called Refis do Funrural (the name by which the social security contribution in the countryside is known), the PRR was established by Law 13.606/18. Since the law was sanctioned in January, this is the fourth time that the accession period has been postponed by the government. The previous deadline, established by another provisional measure (MP 828/18), ended this Wednesday. 

The extension of the debt refinancing period with Funrural was requested from the government by the Parliamentary Agricultural Front (FPA), which is chaired by deputy Tereza Cristina (DEM-MS).

The PRR allows the debts of rural producers (individuals, cooperatives and intermediaries) to be paid in installments with discounts. It also reduces, from 2,5% to 1,7%, the social contribution rate on gross revenue owed by rural companies as workers' social security contributions.

Judicial questioning
The program was created by the government, after pressure from rural producers, amid a judicial impasse regarding the legality of Funrural charges.

In 2011, the Federal Supreme Court (STF) considered social contributions unconstitutional. Many rural producers stopped paying the tax supported by the court's decision. Last year, however, the Supreme Court went back and declared the constitutionality of Funrural, which generated a large liability to be paid by producers and gave rise to negotiations between the government and Congress, resulting in Law 13.606/18.

Last week, in a new trial, the STF reaffirmed the constitutionality of the contribution. As many producers were waiting for the court's decision to enter into refinancing, there was a need to extend the period by five months to benefit those who left joining until the last minute.

Conduct
The provisional measure will now be analyzed in a mixed commission. It is at this stage that amendments are presented. The text approved by the committee will then be voted on in the plenary sessions of the Chamber of Deputies and the Senate.