Taxation is a silver bullet for Brazil to grow, says Tebet – 04/04/2023 – Market

The tax reform is the true silver bullet for Brazil to return to growth and generate jobs, while the fiscal framework would be the bronze one and would help solve the government’s credibility problem, said this Tuesday (4) the Minister of Planning, Simone Tebet.

The statements were made during a hearing in the working group of the Chamber of Deputies that discusses the changes in the tax system.

“If we have the same thought that tax reform is the only silver bullet we have, I would even say that the fiscal framework is the bronze bullet. government, not spending more than it collects, not turning the year 2024 with a fiscal deficit, guaranteeing debt stability in relation to GDP [Produto Interno Bruto]. This is a homework that we have to do within the Executive, “she said.

“The fiscal framework is the bronze bullet to give the necessary credibility so that, from then on, interest rates can start to fall and Brazil can grow again, generate jobs, within that monetary perspective. But the real silver bullet is the tax reform “, he added.

According to the minister, the text with the new tax rules will be forwarded to the Chamber of Deputies by Tuesday (11). “The text has already left Planning in the budgetary part, now the final word belongs to the minister [da Fazenda, Fernando] Haddad,” he said.

Tebet added that the holiday compromised the schedule for delivering and discussing the text. “I made a joke with colleagues that the telephone number of the parliamentarians who would be on Easter break with the family would not stop, and that of the Minister of Planning and the Minister of Finance”, she said. “To avoid, therefore, mistaken narratives, there is an understanding that it is better to place it on Monday,” she added, before being reminded that Haddad will be in China next week.

“But there’s the minister [Alexandre] padilha [Relações Institucionais]. That’s a question, next week she [a regra] ready to be discussed,” he said.

The minister also stated that the Treasury will have the final word on supplementary questions related to revenue. “There will be a basket of options there to reach an increase in revenue without increasing the tax burden,” she said. “Inside this basket, which will be presented to Minister Haddad, some [medidas] by normative act are resolved, they do not need to come to the National Congress. The others need to come to the National Congress.”

Tebet praised the government’s decision not to forward a text with its own proposals for changes in the tax system. “There was a decision by the president [Lula] that I think is absolutely correct that the tax reform is now an agenda of the National Congress.”

She indicated that Simples and the Free Zone of Manaus should continue with a differentiated treatment. “The information we have is that, in principle, these two benefits will be protected. Therefore, they will continue to have a differentiation with regard to the tax issue. But, again, it is a decision to be made by the National Congress that will be accepted by President Lula’s government.”

Tebet was also asked about discussing the change in income and equity at this stage of the reform.

“That’s a discussion with Minister Haddad. I don’t mind, but I want to be very objective on this issue. I understand that we need to approve the broadest possible tax reform. approval of this reform, I clap my hands, count on me”, he said.

However, he added that there is difficulty in debating a reform that includes states and municipalities and also sectors such as services and agribusiness. “But nothing prevents us from taking advantage of the constitutional text to, I don’t know, tax aircraft in Brazil. I won’t go into that issue right now.”