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Bolsonaro Vetoes Church Tax Pardon But Wants Congress to Disobey

Bolsonaro Vetoes Church Tax Pardon But Wants Congress to Disobey

President Jair Bolsonaro supported Economy Minister Paulo Guedes’ austerity drive by vetoing a congressional bill exempting Brazil’s churches from nearly $200 million in tax responsibilities and debts, while at the same time appeasing evangelical leaders by saying lawmakers should override his veto.

Bolsonaro said on social media the measure was necessary to comply with budget rules and avoid “an almost certain impeachment process.” But then he undermined his own action, writing that if he were a member of congress, he “would vote to overturn” the veto.

Two months before municipal elections, Bolsonaro is worried about pleasing one of his largest groups of supporters -- evangelicals -- who number 65 million out of Brazil’s total population of 210 million. The president’s popularity has hit all-time highs thanks to cash handouts during the pandemic, but risks taking a hit as the government phases out the emergency program in the next few months.

Bolsonaro Vetoes Church Tax Pardon But Wants Congress to Disobey

In August ,a final vote in the senate extended churches’ constitutional immunity from paying taxes that would cost the government as much as 1 billion reais ($189 million), according to economy ministry data.

To overturn a presidential veto, the president of congress Davi Alcolumbre must call a joint-session to vote on the matter.

The powerful evangelical caucus in congress expressed confidence that the bill will ultimately be approved. “We will overturn the veto, I am sure about it. I’ve spoken to house speaker Rodrigo Maia, he said he will help us,” Sostenes Cavalcante, one of Brazil’s most influential evangelical lawmakers, said in a phone interview. He said the veto would be put to a vote in the next joint congress session, which has not yet been scheduled.

“Congress understands the importance of not only churches but all religious institutions for the role they play in favor of social justice and those in need,” he said. “The government is secular, but the population is religious. Congress and society are totally aligned.”

©2020 Bloomberg L.P.