Tebet argues that tax reform will make Brazil grow
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Minister was in Palmas for the participatory PPA plenary
Brasilia DF) – The Minister of Planning and Budget, Simone Tebet, said that the tax reform will favor the country’s growth with an increase in revenue, but without raising taxes. The minister, who participated this Friday (16) in the Pluriannual Plan (PPA) plenary session, in Palmas, Tocantins, also recalled that the Senate should vote next week on the bill that deals with the new fiscal framework and will reinforce the government’s commitment to fiscal balance.
“The importance of the tax reform is that it will effectively make Brazil grow. And there is no revenue without growth. We are not going to increase revenue through tax increases. There is no rate increase, there is no tax increase. It is President Lula’s determination, but we have conditions to increase collection through tax reform”,
said the minister.
Last Monday, Tebet said that studies by the portfolio show that the tax reform could increase the Brazilian Gross Domestic Product (GDP) by up to 1% from 2025 onwards. PB), presented last week the main points of the proposal, which include the creation of the Federal Value Added Tax and for the states. The proposal also foresees the implementation of a selective tax, focused on the taxation of products that harm health and the environment, such as cigarettes and alcoholic beverages.
“She [a reforma tributária] it will allow industries to come to Tocantins and be competitive with Asian industries. The industry is what generates jobs with more quality and more income, it is what makes the economy spin and makes Brazil have a large collection to invest in structural works that are very expensive”,
amended the minister during a press conference in Palmas.
Multi-Year Plan
The PPA is one of the three budgetary laws in Brazil, along with the Budgetary Guidelines Law and the Annual Budget Law. It is prepared every four years, always in the first year and effective from the second year of office. This year’s PPA must be delivered by the federal government to the National Congress by August 31 of this year.
Launched in May, the participatory PPA 2024-2026 is an initiative of the federal government that intends to listen to the main demands of the population for the formulation of budgetary guidelines for the coming years.
Participation takes place through state plenaries that will be held in each of the 27 units of the federation. The program makes it possible for social movements, popular organizations, union representations and citizens themselves to help define the priorities to be followed in the preparation of federal budgets for the next four years. So far, plenary meetings have been held in 11 states. The process is expected to be completed by the 14th of July.
The population can also give their opinion on the government’s priorities on the Brasil Participativo platform, electing three priority programs within the set of federal government programs, in addition to presenting three proposals.
“We are going to listen to the Brazilian population and now the people of Tocantins to find out what they want in the area of education, public safety, health, infrastructure which I know is a very big demand, development, employment, income, the environmental issue, tourism. From the moment we receive all these demands, the Brazilian population will be able to vote on the digital platform”,
stressed the minister.
*With information from Agência Brasil
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