Minister says he is not concerned with the fact that votes on Carf, the framework and the tax reform will only take place in July
The Minister of Finance, Fernando Haddadsaid on Tuesday (June 20, 2023) that he was not concerned with the fact that the votes on the bill for the Carf (Administrative Council of Tax Appeals), the new tax rule and the tax reform will only be carried out in July.
“Let’s remember that the framework was supposed to go to Congress in August and we sent it in April. It’s practically approved already. If there is any change in the Senate, the House has some commitment to deal with it in the 1st hour, 1st week of July”the head of the economic team told reporters.
Haddad also assessed that even if the text of the new framework undergoes changes and needs to return to the Chamber, there is “more than enough time” make the budget “based on the new tax rule”.
“IThat was the most important thing and that was the decision we made. From anticipating the debate on the fiscal rule to giving the budget piece time to portray the country’s new fiscal reality. Then [não há] no problem”he said.
The minister will leave for France at 6:55 pm on Wednesday (June 21) to accompany the president Luiz Inacio Lula da Silva (PT) in a meeting with French President Emmanuel Macron. Haddad signaled that he has tax reform high on his agenda.
“From Monday [26.jun] I will be 100% available to advance this agenda, which is a top priority for this semester. In the event that we approve it in the Chamber before the recess, this will mean that we will provide conditions for the Senate to deal with the text in the 2nd semester”, stated.
Haddad said that he is working on the tax reform agenda with “caution”since “lots of Proposals were made and did not pass [no Congresso] precisely because of a lack of caution”.
The Minister of Finance also signaled that the current proposal, which stipulates a value-added tax that replaces the 5 taxes between municipalities, states and the Union “it will mean a very intense productivity shock in the Brazilian economy in the coming years”.
“And the indicators are all helping. We are in a good moment in which we have good expectations of a drop in inflation and a resumption of growth, with the prospect of reaching a moderate Selic rate at the end of the year and a 2024 already with significant economic momentum. In my opinion, it will inaugurate a cycle of sustainable growth in Brazil”, added.
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