The proposal being negotiated between the government and Congress to eliminate taxes on fuel and energy has the potential to withdraw R$ 65 billion from the National Treasury’s coffers. If all states took over this exemption, the loss of revenue would rise to R$ 240 billion.
The calculations are from XP Investimentos, in a report that points out lessons from the country’s fiscal policy in 2021. The projection is for a deficit of R$ 105 billion in 2022, which would rise if the exemption is approved. On the other hand, inflation would drop 4.2 points, from 5.2% to 1%.
The first lesson is that “you can’t play with revenue” in an environment in which the increase in revenue allowed for a much better-than-expected public account result.
President Jair Bolsonaro’s allies want to use this “excess” of revenue to reduce taxes in an election year. The Proposed Amendment to the Constitution (PEC) seeks to circumvent the compensation rule in the face of a loss of revenue.
“We continue to use the excuse of temporary revenues to change fiscal rules,” says XP chief economist Caio Megale. “How can we talk about excess revenue if we continue to run in the red since 2014?”, he asks.
He points out that the revenue that would go to the Treasury could end up financing large energy consumers and Petrobras shareholders. The return to the consumer should be small, according to members of the economic team itself: a reduction of R$ 0.18 to R$ 0.20 in the price of gasoline at the pump.
Authored by the specialist in public accounts Tiago Sbardelotto, a former Treasury officer, the report points out that the change in the rules ends up having an effect on interest rates and exchange rates and generating a worsening of fiscal management in the future.
The information is from the newspaper. The State of São Paulo.
know more
+ SP: Man dies standing, leaning against car, and scene scares residents on the coast
+ One twin became vegan, the other ate meat. Check the result
+ Reincarnation in history: an age-old belief
+ Andressa Urach asks for money on the internet: ‘Help me pay my card bill’
+ Horoscope: check today’s forecast for your sign
+ CNH: see what you need to know for the application and renewal
+ See which were the most stolen cars in SP in 2021
+ Expedition identifies giant squid responsible for ship sinking in 2011
+ Everything you need to know before buying a crockpot
+ US Agency warns: never wash raw chicken meat
+ What is known about fluorone?
+ Trick to squeeze lemons becomes a craze on social media
+ IPVA 2022 SP: see how to consult and pay the tax
#Losses #PEC #reach #billion #points #report #ISTOÉ #DINHEIRO