Businessmen praise Tax Reform and its benefits – 07/07/2023 – Market

Entrepreneurs from large Brazilian companies celebrated the approval of the Tax Reform in the Chamber early this Friday (7), arguing that the matter will bring lasting benefits to Brazil in the long term.

Chairman of the Board of Directors of Bradesco, Luiz Carlos Trabuco said that the approval of the matter is good news for all Brazilians. “It represents the prospect that we can overcome the great challenge of long-term, sustainable and robust growth,” he said.

According to the businessman, the reform model passed by the Chamber simplifies and reduces bureaucracy for taxpayers, but maintains the current tax burden.

“The Brazilian tax system, considered one of the most complex in the world, gains freshness and modernity,” he said. “With the reform, the system loses complexity and gains in efficiency and transparency”, he added.

Trabuco pointed out that, currently, companies spend precious time correctly following regulations regarding the payment of taxes. “In addition to being costly, it generated legal uncertainty”.

The president of Itaú Unibanco, Milton Maluhy Filho, also praised the approved measures, arguing that they indicate a technical reform and that they attack a central point in Brazil: tax simplification.

“From what we’ve seen so far, the benefits of the reform are concentrated in the medium and long term, considering the implementation time and the impacts of the measures. This look to the future is fundamental, as it strengthens a long-term and continuous commitment to simplification and efficiency”, highlighted.

Without mentioning the government’s moves to increase revenue, Maluhy said that the reform is a positive counterpoint to a short-term agenda, focused exclusively on revenue generation, with tax increases.

According to the executive, concentrating efforts only on that would result in the opposite effect, “with a loss of competitiveness and a reduction in investments in a country whose tax burden is already quite relevant”.

Former governor of São Paulo, businessman João Doria also praised the result of the vote in the Chamber. “The revised Tax Reform proposal, as voted in the Chamber of Deputies, is largely adequate for the country. It will improve the productive and business environment in Brazil”, he commented.

Doria indicated that he does not agree with 100% of the text, but considered that it would be worse if the matter had not been approved. “It could be a better proposition, but between the good and the impossible, better stick with the good.”

The CEO of BTG Pactual, Roberto Sallouti, said that the Tax Reform is one of the important economic measures for Brazil to be able to reduce the cost of credit and position itself more competitively on the international scene.

“Brazil has one of the highest tax burdens in the world, with a very complex system, and it is necessary to advance in this simplification”, he commented.

“To this end, approving the Tax Reform and increasing the efficiency of public spending are key points for increasing the productivity of the economy and making the business environment even more favorable”, he added.

For businessman Atilio Rulli, who is part of the Council and vice president of Public Relations for Huawei in Latin America and the Caribbean, the approval of the reform was a historic event.

“She gathered political forces in favor of a tax legislation that is fairer and more adequate to the needs of the Brazilian population and the Brazilian State at this moment”, he stated.

“In my opinion, it was also a great democratic manifestation in favor of the public interest and the development of the country”, he added.