Haddad: without tax reform it is hard to manage tax rules – 06/21/2023 – Market

Minister Fernando Haddad (Finance) defended this Wednesday (21) the tax reform as necessary for the country’s fiscal sustainability, linking the reformulation of the country’s tax system to the management of the new rule for controlling public accounts.

“Without tax reform, it is much more difficult to manage the tax rule. The tax reform is one of the assumptions of the tax rule because it brings security”, said the head of the Treasury at an event promoted by the CNI (National Confederation of Industry) and the Esfera Brasil group .

Haddad also associated the tax reform with greater legal certainty. According to the minister, 40% of the cost of the Judiciary corresponds to tax litigation. “The tax reform is a precondition, in my opinion, for us to take a step towards the fiscal sustainability of the country”, he said.

Haddad also said that the creation of a compensation fund for states with a contribution from the Union, which aims to raise support from the entities for tax reform, is not an obstacle. However, he avoided estimates.

“If we have to create a regional development fund to guarantee the reform, it obviously pays for itself, there are so many inconsistencies in our system”, he said.

“I am not going to anticipate the value because this will be subject to negotiation, there are alternative proposals to a regional development fund that will be discussed at the negotiation table”, he added.

On Tuesday (20), the extraordinary secretary for Tax Reform at the Ministry of Finance, Bernard Appy, said that the Union’s contribution to the FDR (Regional Development Fund) will be less than R$ 50 billion a year.

At this Wednesday’s event, the minister again said that the portfolio will be “immersed” in the next two weeks in the task of approving the tax reform in the Chamber of Deputies.

The topic will be discussed by the president of the Chamber of Deputies, Arthur Lira (PP-AL) in a meeting on Thursday (22) with the presence of governors and parliamentarians.

“At the meeting with the governors, we hope that this issue of equalizing source, value, fund division, if it goes ahead, that it will be resolved, if not, other alternatives may appear,” he said.

Lira also reaffirmed that the plenary of the House will receive votes on Carf, fiscal framework, tax reform and PAA (Food Acquisition Program) from July 3 to 7, a week classified by him as “unprecedented” and “the most important in recent decades “.

The president of the Federal Senate, Rodrigo Pacheco (PSD-MG), also reinforced that the issue will be dealt with quickly in the House. “There are no counter-arguments to saying it’s not time to vote,” he said.