“We are stressing this data so that the president is fully informed of this issue”, declared the minister
The Minister of Finance, Fernando Haddad, said this Wednesday (1st.Nov.2023) that the Federal Revenue investigated subsidies granted to large companies from August to September. He again said that incentives are increasing and reached R$149 billion in 2022.
Haddad mentioned the judicial decision of the STF (Supreme Federal Court) in 2021, which removed the ICMS (Tax on the Circulation of Goods and Services) collected by companies from the PIS (Social Integration Program)/Cofins (Contribution to the Social Security Financing).
The legal effects took place from March 15, 2017, when the thesis of general repercussion was established. “We discovered that companies are compensating for that decision”he said in an interview with journalists.
The statement was given after a new meeting with the president Luiz Inácio Lula da Silva (PT) in the late afternoon of this Wednesday. The minister also cited the Complementary Law 160 of 2017which grants tax benefits to States.
Haddad claimed to have shown Lula “how much this was affecting revenue”. “We are stressing this data so that the president is fully informed of this issue and can then meet with us so that we can address, eventually, the anticipation of some measures”he declared.
When talking about decisions that can be taken to reverse the drop in revenue, Haddad said he cannot “anticipate strategy” because you have to “inform the president” before.
“He is the one who needs to validate the decisions we are going to make. He is worried because he is seeing that something from 2017, both in Congress and in the STF, is having repercussions now”he stated.
LULA
On Friday (Oct 27), Lula said in a coffee with journalists that the government would be unlikely to achieve zero primary deficit next year. Haddad once again said that the president was referring to tax benefits when discussing the issue.
“I had brought him a picture of the fiscal scenario”declared the minister.
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