According to governor Tarcísio de Freitas, the review of tax benefits and the renegotiation of the debt with the Union could open up space of R$20 billion per year
The government of São Paulo published in this Thursday’s edition (May 23, 2024) of Official State Gazette the general guidelines of the “São Paulo in the Right Direction” plan. According to the governor of São Paulo, Tarcísio de Freitas (Republicans), the measures could open up space of around R$20 billion per year.
According to the document (complete – PDF – 418 kB), the plan “provides guidelines and actions to be implemented to modernize state public administration, expand investment, efficiency of public spending and reduction of current expenses”.
The expansion of investments will be carried out by “infrastructure qualification initiatives, expansion and continuous improvement of the business environment in the State of São Paulo, guaranteeing broad competitiveness, regulatory stability, institutional predictability and legal security”.
Actions such as the restructuring of regulatory agencies and the carrying out of studies to expand and improve compliance and tax transaction programs are planned.
The reduction of expenses and the improvement and effectiveness of spending will cover, at least:
- the reduction of operating and personnel expenses;
- the evaluation and reformulation of programs;
- the modernization of the relationship between the tax authorities and taxpayers;
- the renegotiation of the State’s debt with the Union;
- the assessment of tax benefits.
“It is a decree that shows the direction the State will take. The State will review tax benefits. Benefit that makes no sense, that does not generate Capex [investimentos]which does not add employment and which is not decisive for competitiveness, that is, it does not have the power to change market participation, will not be renewed”, Tarcísio told the newspaper The State of S. Paulo.
According to him, each benefit will be analyzed individually. “A third of the benefits that expired in April have not been renewed”, declared the governor.
Tarcísio did not want to give a total estimate of the plan, as several points are under study. Some of the measures will still need the approval of Alesp (Legislative Assembly of the State of São Paulo) to come into force. The governor, however, gave an estimate.
“We are already talking about R$20 billion per year [soma entre o impacto dos benefícios fiscais e da renegociação da dívida do Estado com a União]”, he declared. “It’s time to invest in public policy, railways, subways, hospitals, education, review of our infrastructure, so that we can consider more public-private partnerships”, he concluded.
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