The Minister of Finance said that a challenge of balanced the budget is “role of all” and recalled that Iof rates were higher in the previous government
Rio, Brasilia and San Paolo – The Minister of Finance, Fernando HaddadHe said on Monday 26 that the economic team has until the end of the week to decide how to compensate what will no longer be collected with the decree in the decree on the collection of Financial operations tax (IOF).
“We have time until the end of the week to decide how to compensate. If with more contingency or with some replacement. At the end of the week we will make this decision,” said Fernando Haddad to journalists after the opening of the Nova Indoústra Brasil event, on the occasion of the sector of the sector in the sector, National Bank for Economic and Social Development (Budes)in Rio de Janeiro.
When asked about the increase in credit costs for Iof, Haddad recalled that the tax rates were higher in the previous government of President Jair Bolsonaro.
“If you do your homework and get the Iof rates from the previous government, you will see that they were much larger,” he told journalists. “When Selic increases, the cost of credit increases and entrepreneurs however include the need for the measure.”
When asked if there was already a scenario so that the central bank could alleviate monetary policy, Haddad replied that he works to resolve taxes and monetary “as soon as possible”.
“What we want is to solve this as soon as possible, the inspector and the monetary, to return to adequate levels of both taxation and interest rate, so that the country continues to grow,” he said.
Haddad said the government will follow the tax rule even in an electoral year. “We have a tax reference point, which is strengthened by the measures. We have a real increase up to 2.5% of the public costs of the ceiling. It comes from there less. We will follow the tax rule combined with the national congress,” he concluded.
Role of all
Haddad said that it is necessary to understand the challenge of the budget. “It’s the role of everyone,” he said during the event.
He admitted that the tax burden of the sector is high, but recalled that in 1964 it was 16% of GDP, when the “military dictatorship put 10% more” in this account. “From 16% to 26% of the GDP, the tax burden at the end of the military period. And only 26% to 32% at the time of the currency stabilize, with the royal plan. And here it is,” he compared, adding that today the federal tax burden is less than that 10 years ago.
“We must understand that we have challenges to face, especially in relation to the budget balance, which, as Mercadante said (President of Bandes)He will play the role of everyone, “he said.
Haddad stressed that there are “many expenses” contracted without financing sources. “We must understand that we must honor the commitments made by Congress, many of which are constitutional commitments, and we are doing it in the best possible way, trying to transform the page of a 2%structural deficit of GDP,” he added that President Luiz Inacio da Silva inherited a country with a structural deficit of GDP at 2%.
Haddad has congratulated the work of the Ministry of Development, Industry, Commerce and Services (MICCO) together with Bandes and company leaders for industry. “There is no sense that is happening in the industry and the work of Micts must be appreciated and the recovery of Bandes, unjustly attacked for many years. The role that Bandes has played in the recovery of the industry must be recognized,” he added, adding that it is a political decision of the President of the Republic.
With the support of the congress, the minister said that the government is able to advance to stabilize the budget and create macroeconomic conditions for the industry to be developed again. “The greatest legacy of President Lula in this sector, without a doubt, is the tax reform,” he underlined, provided that its effects on the company environment will be extraordinary.
One of the main points, according to Haddad, is that the exemption of the investment will be 100%, as well as the export exemption. “The tax war will end between states, including the state tax war with the Union, which has been an innovation of the last few years”.
Black box
Haddad said that the current government discovered a “black cashier” in the federal budget of $ 800 billion with tax renunciation. “There was a lot of talk about the Budes black box and today we discovered a black box in the federal budget of $ 800 billion in tax renunciation.
“Bandes is here that he shows the competence, the transparency he has always had, for the benefit of the Brazilian entrepreneur”, he said, citing that the industrial sector is a “very important” tool for all the countries of the world, both liberal and socialist, because it is from him that he comes to increase productivity, use of quality.
“We must understand it, and I think that the Mercadante president has given Bandes a touch of much ingenuity, in order to recover with new tools the ability to encourage the industrial employment industrial industrial industrial industrial industrial.
Information information, Haddad said that this is an area that, thanks to the first conditions of President Lula, was “faced” and had another reality after the president’s programs to allow, among others, that the poor could dream of a higher education diploma. “Without it, there is no industry,” he said.
Another brand of Lula, according to the minister, is the growth acceleration program (PAC). “If we have no infrastructure, we are unable to compete. And we resumed the investments that fell and reached zero until 2022. There was no work in the country of infrastructure, they had no more motorways, no ports, airports, they had nothing in Brazil,” he said.
Now, according to him, the concession and partnership program (PPP) is being resumed to provide competitiveness for industry. “This is done in two years. We are not talking about ten, but two years of work in which these conditions have already operated substantially and will improve, because President Lula has an obsession with his political cradle, which is the factory plan.”
Source: Terra
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