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The Minister of Economy, Paulo Guedes, said on Wednesday (23) that the country has to relieve the payroll of the companies and, therefore, must seek “alternative taxes.”
Guedes and the leader of the government in the Chamber, Ricardo Barros (PP-PR), gave an interview after a meeting of the political and economic wing of the government with President Jair Bolsonaro to discuss tax reform and an income transfer program.
“We discovered 38 million Brazilians, who were invisible, we have to help this group to rejoin the labor market, so we have to relieve the payroll, so we need alternative taxes to alleviate the payroll and help create jobs” said the minister.
According to Barros, the purpose of the meeting was to discuss, in addition to tax relief, an alternative to finance a new program of social transfer of income.
The deputy said that the government maintains the defense of the spending ceiling and fiscal responsibility. According to him, “alternative taxes” will not generate an increase in the tax burden, but rather a reorganization of the system.
“We reaffirm our commitment to the spending limit and fiscal rigor. No proposal to be forwarded will address this issue. We look for resources within the budget to be able to advance in the programs and, if necessary, we will make a substitution of taxation ”, said Barros.
“These assumptions must be clear: there is no increase in the tax burden, there is a commitment to a spending cap and fiscal rigor,” added the government leader.
Guedes also commented that the government is studying making a “soft landing” when the payment of the emergency aid fees, scheduled until the end of the year, ends. The idea, according to the minister, is to maintain the transfer of income to the most vulnerable sectors of the population.
“And, income, the same. We saw the importance of emergency aid, how it helped Brazil continue to breathe and go through this wave of crisis. So, we also have to make a soft landing of the emergency aid program,” concluded Guedes . .
Tax reform and federative pact
Barros said that the meeting with Bolsonaro defined that the government will build, in consultation with party leaders, proposals to adjust the PEC of the federal pact and the tax reform project, both already under analysis in Congress.
The idea is to consult with the leaders to finalize the texts next week and, if there is agreement, formalize the proposals. In the case of the tax reform, the government proposal will be sent to the rapporteur Aguinaldo Ribeiro (PP-PB) and to the rest of the members of the mixed commission that discusses the issue.
The “concept” of the minimum income program, meanwhile, will be agreed with Senator Márcio Bittar (MDB-AC), rapporteur of the PEC that modifies the federative pact.
“These texts will be delivered to the leaders of the Chamber and the Senate and, based on what has been agreed and the contributions they can make, the tax reform will be sent to the Chamber of Deputies and Senator Márcio Bittar will present his report to the Federal Senate” Barros explained.
The president also pointed out that the government wants to approve the projects still in 2020, so it is important to consult the leaders in search of an agreement.
“Consultation with the leaders is essential, therefore, at this time there is no statement that we can make that this or that is within the text that will be presented,” he said.
