Lula says that approving tax reform is a historic fact – 12/16/2023 – Market

President Luiz Inácio Lula da Silva (PT) celebrated this Saturday (16) the approval of the tax reform by the Chamber of Deputies.

“We managed to approve, for the first time in Brazilian history, a tax reform in a Congress in which we have a minority,” he said. “What happened yesterday was a historic fact and Haddad deserves a special round of applause for that.”

The declaration took place during a federal government ceremony in Itaquera (east zone of São Paulo) to announce works on a project to be built in partnership with the MTST (Homeless Workers Movement).

The event is part of Lula’s strategy as an electoral campaigner for federal deputy Guilherme Boulos (PSOL) for the election to Mayor of São Paulo in 2024.

Lula signs the contract to begin work on the Copa do Povo project, which will be part of the Minha Casa, Minha Vida – Empreendimentos program. The housing units will be built in an area invaded in protest by the MTST on the eve of the 2014 World Cup.

The land claimed by the movement is close to the Neo Química Arena, one of the World Cup venues. According to the MTST, the construction project was approved in 2017, but was blocked by the federal government, especially during the Bolsonaro period.

The movement attributes to the Lula administration the resumption of dialogue between the federal, state and municipal spheres for the authorization of the works. The development with 2,650 apartments will be managed by MTST.

During the event, the Minister of Institutional Relations, Alexandre Padilha (PT), stated that the government will work next week to conclude the vote on the Budget and Budget Guidelines Law, consolidating the macroeconomic and budgetary balance.

“The approvals on the bets and the expectation of enactment of the tax reform still have to be completed,” he said.

According to Padilha, this week helped to consolidate what he called “a great Christmas gift to the Brazilian people”, mentioning the enactment of tax reform and the approval of President Lula’s first budget.

“Tax reform simplifies the life of businesspeople, small, medium and large, who want to invest in the country. It puts an end to the tax mess and provides tax justice, because on the one hand there is zero tax for the basic food basket and it starts charging those who have helicopter, jet ski and yacht and creates new taxes for products harmful to health and the environment.”

The minister also stated that in the debate on the complementary law it will be possible to discuss ways of not encouraging the distribution of weapons.

In a historic vote, the Chamber of Deputies gave final approval this Friday (15) to the tax reform, which unifies five taxes on consumption and puts Brazil on the map of countries that adopt a VAT (Value Added Tax) system. The proposal now goes to promulgation.

The PEC (proposed amendment to the Constitution) was approved in the first round by 371 votes to 121.

Around four hours later, the text was approved in the second round by the plenary, by 365 votes to 118. The vote was concluded after the consideration of two highlights — one of which, presented by the PL, resulted in the overturning of the mandatory collection of Selective Tax on weapons, already in the final stretch of the process.