Tax reform should be a priority for the new government according to businessmen

The tax reform promised by Minister Fernando Haddad, of Finance, to be voted on in the first half of the year is pointed out by businessmen as a top priority for the government, according to a survey released this Monday (13th), by Amcham.

Researchers from the American Chamber of Commerce for Brazil heard 465 business leaders on priority topics for the Brazilian economic agenda, and the need for tax reform was identified as the most urgent by 68% of executives. However, only 34% believe that Haddad will be able to fulfill that promise, according to Abrão Neto, CEO of Amcham Brasil.

“The skepticism of the private sector is backed by reality. Comprehensive tax reform has been discussed without success for years. The issue is urgent, complex and, in order to move forward, it will require government leadership and the active engagement of the productive sector”, he analyzes.

According to the executive, the reform is the main measure to be prioritized to boost the Brazilian economy, also taking into account the fiscal balance (51%), legal security and reduction of bureaucracy (39%), strengthening of political and democratic stability (36 %) and an efficient and modern industrial policy (29%).

The survey also revealed that businessmen observe a direct relationship between democratic stability and economic development in Brazil. For the majority (78%), the assessment is that there is a high correlation between the themes.

Entrepreneurs also mentioned concerns about legal and regulatory security (34%), the availability and cost of labor (28%) and uncertainties about the international scenario (24%). “The business sector’s desire for economic growth combined with a stable political environment is one of the key messages picked up by our survey. Both factors are closely linked and influence each other”, adds Abrão Neto.