On 1 June, the National Congress overturned two vetoes made by the President of the Republic to Federal Law No. 14,119, of 13 January 2021, which instituted the National Policy on Payment for Environmental Services, guaranteeing the exemption from taxation on this type of payment. The tax exemption originally provided for had been vetoed on the grounds that the law was unconstitutional because it was a violation of the principle of taxation according to the taxpayer’s economic capacity, as well as being contrary to the public interest, considering that there was a waiver without the presentation of the estimates of the financial-budgetary impact, the declaration of the originator of the expenditure and the necessary compensations.
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