Lula: approval of tax reform is ‘great victory’ – 07/07/2023 – Market

President Lula (PT) celebrated, this Friday (7), the approval of the tax reform by the Chamber of Deputies, classifying it as a “historic moment” and a “great victory for the country”.

Tax Reform has been under discussion in Congress for over 30 years. The proposal, endorsed by the mayor, Arthur Lira (PP-AL), now goes to the Federal Senate.

“Brazil will have its first tax reform in the democratic period. A historic moment and a great victory for the country. Congratulations to the Chamber of Deputies for the significant approval yesterday and to the minister @Haddad_Fernando for their commitment to dialogue and the advancement of reform. We are working towards a better future for everyone. Good morning!”, said Lula, on Twitter.

The base text of the PEC (proposed amendment to the Constitution) was approved in the first round, on Thursday night (6), by 382 deputies – more than the 308 votes needed to approve a constitutional amendment. There were 118 votes against and 3 abstentions.

Shortly before 2 am, the proposal was approved in the second round. In the last vote, there were 375 votes in favor, 113 against and three abstentions.

Still on Thursday night, Minister Fernando Haddad also celebrated on social media. He said it seemed impossible, and that “it was worth fighting for”.

“Tax Reform is not a government proposal; the country asks for it. It is a necessity for our economy, for our productivity to advance. […] We need to depolarize this discussion, de-partisanize it. It is a country project that will benefit everyone. A victory for us and for the next generations”, said the minister.

In this week of concentrated effort in the Chamber, in which Lira chose to prioritize the reform, Lula had not manifested himself or asked for support for the proposal until yesterday. Hours before the measure went to plenary, while the articulators were still seeking to close support for the text, Lula said that the reform is not what he wants, nor Haddad, nor anyone else, but what is possible.

“Tax reform is only done in an authoritarian regime, when the government supports it. We are doing it in a democratic regime, negotiating with everyone and it will be approved. It is not what each of you wants, it is not what Haddad wants, It’s not what I want, but that’s okay. We are not lords of reason,” he said, at a meeting of the CNDI (National Council for Industrial Development), with the participation of several ministers and entities representing sectors of industry and Brazilian society.

He stated that the text is the result of the relationship with the Legislative and that this has to be respected.

“We have to deal with the relationship of forces that are in the National Congress, the deputies that are there, for good or bad, were chosen by Brazilian society, therefore they deserve as much respect as I think Alckmin and I deserve”, he declared.