Alckmin again criticizes Selic and claims that interest rates are “scandalous”

Interest rate

The percentage of 13.75% per year is the same in force since August 2022

Brasilia DF) – The acting President of the Republic, Geraldo Alckmin (PSB), again defended, this Monday (17), the fall in the interest rate, the Selic, currently at 13.75%. The statement was given to journalists after Alckmin attended the opening of the international workshop “Cooperatives for Sustainable Development”, at the Ministry of Foreign Affairs.

“We are doing well. Falling inflation, competitive exchange rate, tax reform approved in the Chamber of Deputies, fiscal framework in progress. All that’s left is for the scandalous interest rates to fall. Then we will have even stronger employment generation”,

stated.

At the last meeting of the Central Bank’s Monetary Policy Committee (Copom), in June, the collegiate voted to maintain the Selic rate. The percentage of 13.75% per year is the same in force since August 2022.

Earlier, the Minister of Finance, Fernando Haddad, returned to criticize the Central Bank, which, this Monday, disclosed that Brazilian economic activity retreated 2% in May. For Haddad, the slowdown in the economy “came strong”, but stated that the result is within expectations.

“It’s as expected, right? Very high real interest time. (…) The intended deceleration of the economy by the Central Bank came hard, and we need to be very careful with what can happen if rates are maintained at around 10% real interest per year. It’s too heavy for the economy.”

highlighted.

Tax reform

After the event, Geraldo Alckmin was also asked about a study by the Institute of Applied Economic Research (Ipea) which estimates that the rate of the new tax created by the tax reform should remain at 28.04%. At that level, the tribute would be one of the largest in the world.

Earlier, Minister Fernando Haddad contested the calculation. For him, the study data do not take into account factors such as the impact of the tax reform on tax evasion and evasion, and how to cut tax expenditures.

According to the acting president, “the principle of reform [tributária] it is very correct”, since, according to him, the proposal for fiscal simplification is being fulfilled. “It’s still a little early for us to have the final result of the work”, he defended.

Since the beginning of the year, the government has defended the approval of a new tax system for Brazil. The topic has been debated in Congress for about 30 years. Two weeks ago, the Chamber of Deputies approved the proposal, which is now being analyzed by senators.

In general terms, the text of the tax reform provides that all products and services sold in the country will have a unified federal tax through a “dual VAT”.

*With information from Metrópoles

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