Haddad announces new economic measures and proposes “gradual repayment” of the payroll

Finance Minister Fernando Haddad announced, this Thursday (28), a package of economic measures that will be forwarded to the National Congress. The objective is to increase revenue to try to reach the fiscal target of zero deficit in 2024. The proposal covers three points, which will be included in a provisional measure to be presented by the government later this year:

1. the imposition of a tax compensation limit for companies that won court decisions for undue tax payments in previous years;
2. changes to Perse, an incentive program for the events sector created during the pandemic, so that companies in the segment can return to paying taxes;
3. the gradual reinstatement of the payroll in 17 sectors of the economy.

“There are many things to decide after the enactment of the tax reform and we will forward complementary measures after a detailed examination of the Union budget. We analyzed all the holes and our commitment was to arrive with a smaller deficit at the end of this year”, said Haddad.

To increase revenue, Haddad mentioned that a “gradual reimbursement will be sent to Congress, being analyzed sector by sector” and signaled that a reform of labor taxes could occur, starting with the reimbursement of 17 sectors, such as communication, in which is People’s Gazette. “It doesn’t necessarily go back to the 20% employer quota. And with a new ingredient that we want to test, which is the idea of ​​exempting the first minimum wage that the worker receives from payment,” he said.

According to Haddad, the measure will be a test of what he understands as an “interesting path” to employability, especially for the poorest population. “You reduce the burden of employment on the worker who earns less”, continued the minister.

Another change presented by Haddad will be in the Events Sector Emergency Resumption Program (Perse), created during the pandemic to benefit the cultural sector and extended by Congress, in May, until 2026. According to the minister, part of the tax rebates included in this program will be gradually repealed during this period.

The minister also reported that the government had paid 100% of the court orders, government debts that have become final and unappealable, for which there are no more resources available. “We are talking about more than R$90 billion in court orders paid,” he said. And he added: “our effort continues to balance the books by reducing tax spending.”

Haddad highlighted that the new measures are to put “order in public accounts and said that “Brazil has demonstrated that it is possible to have good economic forecasts”. He mentioned that “the exchange rate, inflation, unemployment rate are much more favorable than than last year.” “We are facing each of the problems with transparency, dialogue and explanation of the measures to reach a common denominator and the country to move forward”, he declared.