After the 1st round, the Minister of Finance stated that exceptions are coherent, but will need to pass a “reality test” and can be revised
The Minister of Finance, Fernando Haddadsaid that the approval in the first round of the tax reform this Friday afternoon (Dec 15, 2023) represents an important day for the country after 40 years of debates on the issue.
“Brazil has matured. He knows that he needed to face this agenda, which is the most important of the reforms, because it organizes the productive system, puts Brazil in step with the most modern in the world”declared Haddad to journalists in São Paulo.
According to him, exceptions to the reform will have to go through the “reality test” and can be reviewed “in benefit of a lower standard rate”but are “coherent” with sectors that suffer greater tax evasion. “Lower than the current one, the standard rate will certainly be”he said.
Haddad stated that 40% of legal actions in the country have “tax reasons” and that this “it has to end”on behalf of a system with “less conflict”.
“The State needs a budget, and the taxpayer needs legal security. This is what we are promoting with tax reform”, he defended. The minister also said that the system benefits from more simplicity and transparency.
With the expectation of enactment later this year, the minister hopes to send to Congress in 2024 the “constitutional provisions”already having established parameters and decisions made.
Haddad stated that he was “very happy” with the result and said that there are new measures to be announced in 2024, but that data were “Important steps” in 2023.
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