Caiado criticizes false support for tax reform – 06/29/2023 – Market

The governor of Goiás, Ronaldo Caiado (União Brasil), returned to criticize this Thursday (28) the proposal of tax reform on consumption that is under discussion in the National Congress.

Caiado said he does not believe that the text has the strength to pass the Chamber in the first half, as has been defended by the economic team of the federal government and by the President of the House, Arthur Lira (PP-AL). He also stated that many opinions contrary to the text have not been made explicit by governors.

“My positions are very clear, but what happens is that people don’t want to say that the king is naked. And, suddenly, they prefer to let things happen until the day of the poll”, he told the Sheet during the Lide business event, which takes place in Rio de Janeiro.

“But what happens is that the governors will reflect more on this subject and will realize that we all have a very great responsibility, which is the preservation of the federal entities”, he added.

Caiado said that the tax reform that is under discussion concentrates powers in the hands of the federal government, and compromises democracy. “Reform should start with the federal government. It should set a good example,” he said.

According to the governor, PIS (Social Integration Program), Cofins (Contribution for the Financing of Social Security) and IPI (Tax on Industrialized Products), federal taxes included in the reform, are not the main sources of revenue for the federal government, indicating that changes will not affect the Union as much as the states and municipalities.

“The Union collects around BRL 1.4 trillion, and the states and municipalities collect BRL 960 billion. So, if you really want to lower the Brazil cost, and show that you want to set a good example, you should having initiated the reform by the Union”, he affirmed.

Caiado also joined other governors in criticizing the federative council, which is under discussion in the context of the reform and which will manage the IBS (Tax on Goods and Services) shared by the states and municipalities. The new tax will bring together state and municipal taxes on consumption — ICMS (Tax on Circulation of Goods and Services) and ISS (Tax on Services).

“They want to concentrate all the collection within a council, but with headquarters in Brasilia, and the states will have federal legislation, which will impose rules for us in a situation of a country that is of disparate and heterogeneous positions. While Brazil grows 2 .9%, my Goiás grows 6.2%”, he argued.

CROP PLAN

Governor of a state with a strong presence in agribusiness —which in turn is a critical sector for tax reform—, Caiado praised the new Crop Plan, announced last Wednesday (28) by President Luiz Inácio Lula da Silva. “It was the biggest agricultural plan we’ve ever had,” he told reporters.

“I think President Lula had the sensitivity to understand just one thing: one thing is our political and doctrinal divergence, everyone knows that he plays in one political field and I in another. Another thing is our administrative process”, he said. Whitewashed.

“He understood that it is precisely agriculture that gives Brazil this comfortable condition today of being able to have an export of US$ 159 billion”, he added.

The reporter traveled at the invitation of the Business Forum Lide