The Minister of Finance, Fernando Haddad, said this Tuesday (21) that Brazil has three major challenges to face — social, environmental and fiscal — and that the reforms put forward by the economic team address these issues.
In the minister’s assessment, the government should be able to send a large part of the measures to the National Congress — such as the tax reform and the new tax framework — still in the first semester.
With this, the expectation is that the projects will be approved in both legislative houses until the end of the year.
“Dialogues are taking place. I spent Saturday and Sunday working on the interlocution to prepare the political ground for the reception of the new fiscal framework”, he said at a BNDES seminar.
“I think the tax reform […] will advance in the Chamber of Deputies. We are fully eligible to vote. [a reforma tributária] between June and June in the Chamber and in the second semester in the Senate”, he added.
Last Monday (20), Haddad met with the presidents of the Chamber and Senate, Arthur Lira (PP) and Rodrigo Pacheco (PSD), to discuss the new fiscal rule that will replace the spending ceiling. According to him, the reception of the two parliamentarians “was very good”.
Market is not considering all impacts of tax reform
During his speech, minister Haddad emphasized that, in his view, the financial market it is not considering the “by-products of the tax reform”.
According to the head of the economic area, the reform will not only simplify the tax system but also bring tax justice and gains in evidence for the Brazilian economy.
“Tax reform is already an agenda for the future, which will allow us to deliver an efficiency shock to the economy […] The tax reform together with the new fiscal rules will give the country a horizon of both fiscal sustainability and social sustainability,” he said.
Haddad also took advantage of his participation in the BNDES event to echo the government’s criticism of the current basic interest rate, which has been stationary at 13.75% since August 2022. According to the minister, the Selic rate is “exaggeratedly high” and there are space for cuts.
Source: Moneytimes
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
