03/19/2024 – 11:16
(Reuters) -The Minister of Finance, Fernando Haddad, said on Tuesday that the government should send to Congress from next month a complementary bill to regulate tax reform, and stated that it is necessary to advance microeconomic measures in the Legislature this semester to consolidate the country's growth.
“From next month we must send the complementary law regulating the constitutional reform”, said Haddad in a seminar organized by Esfera Brasil, in Brasília.
Haddad also stated that “every care” is necessary for the transition towards the new tax system to be completed “successfully”, praising the Constitutional Amendment Proposal (PEC) approved last year by Congress as “the reform of reforms”.
“Since my law school days, I have heard about the need for tax reform in Brazil… I don’t know how the country has endured so much neglect and so much waste of time,” he stated.
The minister also defended the performance that the economic team has had in the fiscal area, pointing out that the government has put in place “necessary principles and values” in order to anticipate the balance of public accounts before the end of the transition to the new tax system in 2032.
He said that the Executive defends the commitment to fiscal responsibility without neglecting a social and environmental perspective, and pointed out that analyzes by risk agencies and international organizations have placed the country on a path of fiscal balance in the medium term.
“We cannot wait until 2032 to put order in such disorganized public accounts… We want to adopt the principle of fiscal responsibility without forgetting to look at social and environmental responsibility”, he stated.
Haddad argued that actions on the tax and fiscal agendas only create the “assumptions” for the country's development, stating that it is necessary for Congress to approve the microeconomic measures sent by the government this semester to consolidate growth.
The minister mentioned measures such as the Bankruptcy Law and the standardization of interest rates in court decisions as “necessary measures” to increase Brazil's potential Gross Domestic Product (GDP).
Finally, Haddad said that it is “absolutely essential” to have a Central Bank that looks at the country’s growth needs while fulfilling its mandate to control inflation. He reiterated the government's commitment to price stability.
(By Fernando Cardoso, in São PauloEditing by Camila Moreira and Pedro Fonseca)
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