One of Lula’s interlocutors with the market, the deputy says that Bolsonaro’s decision created federative conflict
the deputy Alexandre Padilha (PT-SP) said this Wednesday (3.Aug.2022) that the limitation of the ICMS rate on fuels, electricity, transport and telecommunications created “another federal conflict”.
The STF (Supreme Federal Court) allowed some States to suspend the payment of debts with the Union because of the limitation in tax collection.
Padilha said that the president Jair Bolsonaro (PL) adopted a structural measure to combat a conjunctural problem, the rise in fuels. According to him, the next government will have to deal with the fiscal consequences of this type of decision. The suspension of payments, for example, reduces Union revenue.
Federal deputy for the PT in São Paulo, a 50-year-old doctor, he is the name of the moment in the PT’s economic field. the former president Luiz Inacio Lula da Silva (PT), candidate for the Presidency of the Republic, has commissioned Padilha to speak with businessmen and bankers.
The assessment of politicians around Lula is that the former president is testing the congressman. He is quoted to command a ministry in the economic area in an eventual new PT government.
“He [Bolsonaro] created a federal problem that I believe will get worse by the end of the year, because other injunctions may appear [suspendendo pagamentos dos Estados]. It gets worse from a fiscal point of view because it means that these States will not pay the debt with the Union. And it will be an issue for the next government that, in the debate of a tax reform in the country, which is necessary, this issue will appear with force again”said Padilha in an interview with Power 360.
The interview was recorded in the studio of Power 360, in Brasília, this Wednesday (3.Aug.2022). Watch the entirety (37m19sec):
Padilha referred to the decisions taken by the Minister of the Federal Supreme Court (STF) Alexandre de Moraes. He decided that Alagoas, Maranhão, Piauí and São Paulo can suspend payment of their debts with the Union. The States allege that they had a fall in the collection of ICMS.
Congress passed a measure that limits the tax rate on fuel, electricity, transportation and telecommunications. It established that the federal government will have to financially compensate the entities that lose more than 5% of the tax collection in 2021. Moraes mentioned the compensation in the decision favorable to São Paulo.
ICMS is a state tax that represented 86% of state revenue in 2021, or R$652 billion. According to governors, fuel, oil, lubricants and energy accounted for almost 30% of the amount collected from the tax.
According to Padilha, Bolsonaro provoked a “mess” federation instead of changing Petrobras’ pricing policy. “This mess that Bolsonaro made with ICMS took place solely and exclusively because he was someone who did not want to have a new Petrobras pricing policy. He ruled 4 years looking more towards the New York shareholder”said.
The deputy also said that, in a possible new Lula government, there will be an appreciation of the state-owned company, including for the company to increase its production capacity.
“Petrobras has the role of increasingly entering other energy matrices. It is important to value the company, it is important for it to grow and value itself, but without this being at the expense of the pocket of the Brazilian people”, said.
Read more about Lula’s possible proposals:
DIALOGUE WITH MARKET
Padilha is one of the main interlocutors of Lula’s presidential campaign with businessmen and the financial market. Although the environment with the economic sector is more relaxed, there is still resistance to a possible return of the PT to the Planalto Palace.
For the deputy, the role of the campaign at the moment is “to remind these economic actors of what President Lula’s government was like”. “It was the only 8 years in the history of the country in which 3 things happened at the same time: economic growth, reduction of inequality and fiscal responsibility”said.
The PT candidate believes that the economic sector knows that there will be dialogue both with Lula and with the deputy on the ticket, the former governor Geraldo Alckmin (PSB).
Asked about some of Lula’s pejorative statements in relation to businessmen, such as, for example, calling them “greedy”Padilha said he thought the sector “is less concerned with what one or another expression is, and is more concerned with knowing what the country is going to do”.
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