Ex-minister is the favorite to be finance minister in the Lula government
Former minister and former mayor of São Paulo Fernando Haddad (PT), the favorite to be Minister of Finance in the Lula government, said this Friday (25.Nov.2022) that the PT administration will “top priority” to a tax reform in 2023.
“A ddetermination of the president is to give total priority to tax reform at the beginning of the government”, said Haddad to bankers at an event promoted by Febraban (Brazilian Federation of Banks), in São Paulo (SP).
The former minister represented the president-elect Luiz Inacio Lula da Silva (PT) at the meeting with bankers. Lula was unable to attend because she is recovering from surgery on her larynx. The president of BC (Central Bank), Roberto Campos Neto, also participated in the event. He is another candidate for the post of finance minister in the next government.
In his speech, Haddad said that Lula tried to pass a tax reform in the past, but failed. The former minister said that the president-elect wants to take advantage of the moment when the subject “matured“in Congress to approve the measure.
🇧🇷It seems to me that President Lula will give priority next year to the approval of this 1st stage of the tax reform, which concerns some taxes. But, in the sequence, he intends to submit a proposal to reformulate taxes on income and assets to complete the circle of tax reform in Brazil“, said Haddad.
The former minister said that the president is committed to carrying out the reform and has the support of society and the banking sector. The former mayor said the measure is “essential and structural🇧🇷
THE PROPOSAL THAT HADDAD QUOTED
The former minister mentioned in his speech at Febraban a proposal for tax reform presented in 2019, which is being processed by the National Congress.
The proposal is from the deputy Rossi Whale (MDB-SP), with the collaboration of economist Bernard Appy, director of CCIF (Centro de Cidadania Fiscal). He was Secretary of Economic Policy at the Ministry of Finance during Lula’s presidency.
The text proposes changes aimed at simplifying tax collection in the country. However, it does not provide for a reduction in the tax burden.
The PEC talks about replacing 5 taxes (PIS, Cofins, IPI, ICMS and ISS), 3 of which are federal, the state ICMS and the municipal ISS, by 1 single value-added tax that is called IBS (Tax on Goods and Services) .
The text has already been approved by the Chamber’s CCJ (Constitution and Justice Commission) and is awaiting analysis by a special commission. If approved, the PEC still needs to go through the plenary of the House and also be approved in the Senate.
FAVORITE HADDAD FOR THE FARM
The name of the former Minister of Education Fernando Haddad (PT) is the most quoted to take over the Ministry of Finance of the president-elect’s government Luiz Inacio Lula da Silva (PT). O Power360 found out that the PT has signaled to the transition team willingness to work with the former president of the Central Bank Persio Arida.
The idea is to form a kind of “Tripe” at the head of the Economy, with Haddad at the Treasury and Arida at the Ministry of Planning. André Esteves, owner of the BTGhe told members of the transition last Wednesday (23.Nov.2022), that “a half” do Faria Lima would already be pacified if the former mayor of São Paulo is nominated.
Another name cited by the PT for the Treasury is that of the president of the central bank, Roberto Campos Neto. He will participate in the Sphere Brazil in Guarujá (SP), which will take place from the 25th to the 27th of November. The event will be attended by PT leaders, such as the president of the party, Gleisi Hoffmann🇧🇷
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