(Adds Senate vote)
BRASILIA, Nov 4 (Reuters) - Brazil’s Congress on Wednesday overrode President Jair Bolsonaro’s veto of an extension to payroll tax exemptions for 2021 that lawmakers said would cause layoffs, despite the cost to the Treasury.
The Senate followed the lower house in voting to override the presidential veto of continued tax breaks in 17 labor-intensive sectors of the economy next year.
Lawmakers said the veto would have deepened unemployment that is already at a critical level due to the coronavirus pandemic.
Bolsonaro vetoed the extended tax breaks to avoid the loss of an estimated 10 billion reais ($1.7 billion) in tax revenue needed to plug the government’s budget deficit.
Talks with lawmakers to link the ending of the tax exemptions to a proposal for a new financial transaction tax failed, the government’s leader in Congress, Senator Eduardo Gomes, told reporters. ($1 = 5.6499 reais) (Reporting by Maria Carolina Marcello; Editing by Sandra Maler and Jonathan Oatis)
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