Overview

• The case was brought by the Attorney General’s Office challenging provisions that prolonged the benefit for 17 sectors and lowered the municipal payroll contribution rate to 8%.
• Minister Cristiano Zanin scheduled the merits review to be held in the court’s plenário virtual, where ministers file votes electronically over a defined period.
• The regime allows employers to replace the 20% INSS charge with a 1% to 4.5% levy on gross revenue, covering sectors that employ more than 9 million workers.
• Government budget estimates project foregone revenue of R$12.2 billion federally and R$6.2 billion for municipalities in 2026, figures comparable to the revenue once targeted by the now-defeated MP 1303.
• Some sector lawyers and court interlocutors forecast a decision favorable to the government, though the result remains uncertain.