Haddad again criticizes exemptions and asks Congress not to vote bomb tariffs

The Minister of Finance, Fernando Haddad, again criticized, this weekend, the approval of the bill that extended the payroll exemption for 17 sectors until the end of 2027, and asked that Congress not vote what he calls bomb tariffs that generate more expenses for the federal government. He tries to close the 2024 public accounts with zero deficit, but needs to raise R$ 168 billion to cover the gap in the forecast budget.

The speeches were given during an event promoted by brokerage XP, in São Paulo, on Saturday (2), in which Haddad emphasized that Congress plays a “key role” in government policies. The minister stressed the need to approve appropriate economic measures and that if Congress passes proposals in the right direction and avoids harmful agendas, Brazil could have a positive second half.

“Congress has a key role. If Congress joins forces and approves measures in the right direction, removing the bomb agenda, populism, avoiding risk and approving a consistent agenda, I think we will end the year very well. If the legislative results come in the right direction, we will have an auspicious second semester that will bring gains”, he said.

Haddad and the Chamber have not yet reached a consensus on one of the government’s main measures to increase revenue, which is the taxation of funds offshore and closed, which affect the so-called “super-rich”.

Haddad praised the partnership between the government and Congress in the first half, highlighting the collaborative role of the legislature. And he also considered the disagreements between the government and the Central Bank on interest rate policy as something normal and emphasized the importance of dialogue – “this happens all over the world. The ideal is permanent dialogue and trying to harmonize policies”.

Last Friday (1st), Lula hardened his artillery against the president of the Central Bank, Roberto Campos Neto, due to the delay in starting to lower the basic interest rate — it went from 13.75% to 13.25% at the Monetary Policy Committee (Copom) meeting in August.

“The citizen of the Central Bank needs to know that he is president of the BC of Brazil and that, therefore, he needs to lower interest rates. How is the entrepreneur going to invest if he is going to get a high interest rate? That’s why we’re going to keep fighting”, said Lula, adding that he’ll keep pushing for more Selic reductions.

Also during the XP event, Fernando Haddad criticized past exemptions and expressed the government’s intention to “revisit” some of them, especially those that did not generate positive results.

Regarding the next legislative activities, the president of the Chamber of Deputies, Arthur Lira (PP-AL), determined that the parliamentarians be in Brasília this Monday (4th) to guarantee a high quorum in the voting of important projects, such as the one that limits the credit card interest. The government hopes to raise up to R$ 12 billion with the taxation of sports betting.

In addition, the government sent a proposal to the National Congress for an adjustment of R$ 101 in the minimum wage in 2024, raising it from R$ 1,320.00 to R$ 1,421.00. The readjustment represents an increase of 7.65% in relation to the value proposed for this year’s salary and is included in the project of the Annual Budget Law. The project was delivered virtually by the Ministers of Finance and Planning and Budget to the Legislative.