Guedes defends the creation of the digital tax, but then says it is ‘dead’ | economy

Shortly after, still during the hearing, Guedes said that, for him, “the tax is dead”, but he warned that, without the resources that would come with this tax, he cannot approve the proposal under discussion in Congress to revoke a veto by President Jair Bolsonaro to extend, until the end of 2021, the payroll exemption of 17 sectors. of the economy.

Guedes also again denied the relationship between the possible new tax and the old Provisional Contribution on Financial Transactions (CPMF).

“People didn’t even understand that a digital future is coming. Brazil is the third or fourth largest digital economy in the world, we will have to have a digital tax ”, said the minister.

Minutes later, the minister said:

“The tax is dead, it doesn’t exist. So since I have no source, I cannot approve, having given an opinion that until I have the money, I cannot approve the exemption, “he said.” From my point of view, the tax is dead. There is no tax, there is no exemption ”, he amended.

See below a video from September 23 with an analysis of the government’s proposal to recreate taxes along the lines of the former CPMF:

Guedes’ statement comes a week after President Jair Bolsonaro declared, during a diplomatic training ceremony, that Brazil did not raise taxes during the new coronavirus pandemic or increase when the pandemic ends.

Bolsonaro made the statement addressing the Minister of Economy himself, who was also present at the event.

In Congress, lawmakers have also shown signs that a government proposal to create a new tax may not be supported. At the end of September, for example, the president of the commission that debates the tax reform, Senator Roberto Rocha (PSDB-MA) declared that he did not consider it “opportune” to discuss a tax along the lines of the old CPMF.

However, according to the minister, this new tax will not represent an increase in the tax burden, since the proposal is to replace other existing taxes, such as payroll.

“We will decrease the others [tributos]Let’s simplify the rest. We will ease the delivery. We are going for a better future ”, he added.

Paulo Guedes also said that the 200-real bill, printed by the maned wolf, was invented to pay for emergency aid during the new coronavirus pandemic. He further said that in the future, he could retire.

“The maned wolf, that big bill, was invented because we had a logistical problem of paying people. The simplest people did not have the digital tools, so we had to give physical money. And the money was accumulating, it was stuck in a community, he didn’t go away. We need to create a higher score, against the direction of the world, “he said.

According to the minister, “the world is going to lower scores to end the crime that is financed with those high scores, to end corruption.”