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BRASILIA – The Minister of Economy, Paulo Guedes, met with his team and with the leader of the government in the Chamber, the federal deputy Ricardo Barros (PP-PR), to align the last details of the tax reform proposal.
The idea is to create a new tax that allows paying a wide tax relief on payroll, in order to facilitate job creation.
The proposals will be presented by Guedes to President Jair Bolsonaro this weekend and, on Monday, to the leaders of the allied parties in Congress.
A participant of the meeting heard privately by GLOBO affirmed that the government has alternatives to what has been called a “digital tax”, a tax on financial transactions that Planalto intends to implement, but which may meet resistance in Congress.
Without giving more details, the source said that these alternatives are aimed at increasing revenues and reducing expenses planned in the 2021 Budget.
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The minister went on to say that the proposals focus on a broad payroll exemption.
– We are making the final adjustments, but we have already agreed on some bases. We are going to simplify taxes, reduce rates, increase the range of exemptions, create a more favorable business environment for job creation, mainly with a focus on payroll tax relief, to make around 40 million Brazilians who are in the informal sector return to the labor market – said Guedes.
The minister reiterated that the proposed measure aims to make the system less regressive:
– We will tax those who earn more more, less those who earn less. Taxes will be substitutes. If you take from a collection, you need to have another font to replace – concluded.
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According to the leader Ricardo Barros, the tax reform should also make a social income distribution program feasible as of 2021. And that the text will only be released after the support of President Jair Bolsonaro and government leaders in Congress.
– We have to increase employability and create a solution for the millions of Brazilians who are receiving emergency aid, which expires on December 31st. We need a social program starting January 1st. The president did not like some features (that had been presented), so we are re-studying the program to guarantee the income of the most fragile Brazilians.
