Coordinator of the technical area of the transition highlighted that the measure enables new resources without increasing the tax burden
The technical coordinator of the transition team, Aloizio Mercadante, said this Thursday (17.Nov.2022) that the group is considering reviewing the volume of tax exemptions currently granted. For him, it would be a way to increase the collection of resources for the federal government without increasing the tax burden.
“Yesterday, for example, you saw the TCU here, R$ 400 billion in subsidies, tax incentives. A review of this makes an important gain and there are other very interesting proposals that will be presented in due course. We will have beautiful surprises in this area”, said in an interview with journalists at the CCBB (Centro Cultural Banco do Brasil), headquarters of the transitional government.
On Wednesday (Nov.16.2022), the interim president of the TCU (Union Court of Auditors), Bruno Dantas, said that there is a “urgent need” to review tax exemptions in the country.
He delivered a set of reports to the elected vice president, Geraldo Alckmin (PSB), coordinator of the transition team, with diagnoses about the public machine.
According to Dantas, Brazil commits 4% of its GDP (Gross Domestic Product) to tax exemptions, which corresponds to a tax exemption of around R$ 400 billion. read the full of the TCU report (8MB).
He defended limiting exemptions and periodically measuring the effects of each measure of the type, following the example of developed countries such as the United Kingdom, Australia and the United States.
Although Mercadante says that the measure will not increase the tax burden, the review of tax exemptions will make the sectors that currently benefit from having to pay taxes again.
According to the PT, there is a “In-Depth Discussion” in the thematic groups of the transition “about cutting expenses, increasing the efficiency of public spending, combating waste” that the group has identified.
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