On 12/30/2022, the government of former President Jair Bolsonaro published Executive Orders No. 11,321/22 and No. 11,322/22, reducing by 50% the rates of the Additional Freight for Renewal of the Merchant Marine (AFRMM) and PIS and of Cofins on financial income. In order to reverse the reductions made at the end of 2022, the government of President Luiz Inácio Lula da Silva revoked such orders, through a new Order No. 11.374/23, published on 1/2/2023. Thus, a great debate was initiated on whether or not Orders No. 11.321/22 and No.11.322/22, published on 12/30/22, effective as of 1/1/23 were valid, as well as, if the repeals carried out by Order No. 11.374/23, published on 1/2/23, effective on the same day, resulted in the annulment of effects of those previous Orders. Consequently, questions arose as to whether Decree No. 11,374/23 would be sufficient to create an exception to the rule for applying the Principle of Priority, as it brought an unequivocal increase in the rates of AFRMM, PIS and Cofins on financial income.
*By Maria Helena Santos Silva Ferreira, Adriana Passaro and Humberto Almeida

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