Haddad says new tax rule will be taken to Lula – 03/10/2023 – Market

Finance Minister Fernando Haddad (PT) reinforced this Friday (10) that he will present the new fiscal framework proposal to President Luiz Inácio Lula da Silva (PT) next week, as soon as the representative defines his agenda. public.

Haddad avoided giving details of the proposal, arguing that he first needs to present it to Lula. The minister only said that it is “simple”, but that it is necessary to “be careful”. He even added that he doesn’t intend to advance some points because the subject “stirs up moods” and that he doesn’t want to “harm anyone”.

Haddad made an announcement this Friday (10) to present an agreement between the Union and the states to compensate for the losses of the other entities of the federation with the changes in the ICMS (Tax on Circulation of Goods and Services) rules for fuel.

In the end, the minister was asked about the proposal, but did not want to convey more details. He just stated that the economic team is already closed on the proposal, but that the final word will rest with the President of the Republic.

“Last week, I said that I would conclude the framework in terms of Finance. This week, I will conclude it in terms of the economic area and next week I will present it to the President of the Republic. I already said that at the ministerial meeting, which I I’m ready to [apresentar a proposta]I have already spoken with several interlocutors, who are key people, so that we have confidence in the design that is being presented”, he said.

“And we will present it as soon as the president opens up next week’s agenda for him. It is he who will give the final word. We in the economic area already have an understanding about this”, he added.

The finance minister also stated that he avoids giving details about the model that will replace the spending cap so as not to impact the market, saying that this news stirs “moods” and makes people earn and lose money.

“It messes with moods, makes people earn money and others lose money. And I’m not wanting to harm anyone. That’s why the zeal with information has to be taken mainly from the economic authority. If I’m not zealous with that, I’ll be harming someone unnecessarily,” he said.

“The rule is simple, but it has its own dynamics and will undergo scrutiny by Congress. We have to be careful and try to respect the procedure so as not to harm anyone,” he added.

The new fiscal framework to be proposed by the government is one of the most awaited topics by the market, as it directly interferes with expectations surrounding the trajectory of public accounts over the next few years.

On the last 2nd, the minister had already declared that the announcement of the new fiscal rule was brought forward to March so that the PLDO (Budgetary Guidelines Bill) could be forwarded to Congress already based on the new fiscal rule.

The LDO project must be sent to the Executive for Congress by April 15 of each year, and be returned for sanction by July 17 of the same year. Within this schedule, without a new fiscal framework being presented beforehand, the start of the 2024 budget discussion, which should be 100% Lula, would have to be based on the rule that is in effect (and which the government rejects), the spending.