Senate states that MP for direct purchase of tickets affronts LRF

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The Department of Budget Consulting, Inspection and Control of the Senate issued a technical note this Thursday (27/3) stating that the Provisional Measure for the direct purchase of plane tickets violates the Fiscal Responsibility Law (LRF) as it does not have estimation of financial and budgetary impact.


Senate states that the Provisional Measure for the direct purchase of plane tickets violates the Fiscal Responsibility Law (LRF) as it does not have an estimated financial and budgetary impact.
Under the MP, the government is exempted from buying tickets through travel agencies, which were committed to selling at the cheapest price, to buy directly from airlines, which sell at a tax discount.

The note highlights that the direct purchase model B2B Lead added improvements to the ticket issuance process, in addition to providing a reduction in prices paid.

"Nothing is known, however, about the estimated reduction in revenue resulting from the difference in cash flow from taxes, for the year 2019 and the following two financial years", says an excerpt from the document.

According to the note, constitutionally, the adoption of provisional measures must only take place to address urgent and relevant situations, which cannot be addressed through ordinary legislative means.

"This aspect, however, does not require discussion on this occasion, since the scope of the Technical Note is solely and exclusively to assess the conformity of the terms of the Provisional Measure with the constitutional and legal provisions that deal with budgetary-financial matters", says the department.



Economy
Since Tuesday (26/3), federal government agencies and entities have resumed purchasing airline tickets directly from companies that operate domestic flights. According to the Ministry of Economy, with the end of travel agency intermediation, savings could reach R$15 million per year.

The exemption from paying taxes was in force from 2014 until December 2017 (Law 13,043/14) and was then extended until June 2018. Now, with the publication of Provisional Measure No. 877/19, the federal government once again stops withholding Taxes on tickets purchased with the Federal Government Payment Card are at source.