President of the Senate reaffirms support for spending cuts, but says the package is only the beginning of the journey
The president of the Senate, (PSD-MG), stated this Friday (29.Nov.2024) that changes to the income tax exemption will only be made if Brazil has the conditions to do so. He conditioned the measure on economic growth and the cut in public spending.
“The issue of income tax exemption, although it is everyone’s desire, is not on the agenda for now and can only happen if (and only if) we have the fiscal conditions for it. If we don’t have it, it won’t happen”he stated in a note.
This Thursday, after meeting with the Minister of Finance, Fernando Haddad, Pacheco had already said that increasing the exemption range would only be discussed throughout 2025.
In this Friday’s note, however, he toughened his prediction by stating that if there are no conditions, “It’s not going to happen.” He also defended that the measure does not result in a tax increase.
“This is a discussion going forward, which will depend greatly on Brazil’s ability to grow and generate wealth, without increasing taxes”, declared.
The president of the Senate also reaffirmed his support for the spending cut package, but said that it is only the “beginning of a journey”.
“It is important that Congress supports control, governance, compliance and spending cut measures, even if they are not very friendly. Others can even be thought of, as this package should be seen as the beginning of a journey of fiscal responsibility”, he stated.
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I had spoken on Thursday (Nov 28) that changes to Income Tax would only be analyzed by Congress in 2025. The rules would come into effect in 2026.
“They will not be put to a vote this year. It will be the subject of a broad discussion throughout 2025, such as the consumption tax reform”said the president of the Senate.
On the same day, he said he wanted to finalize the vote by the congressmen’s recess. If confirmed, to complete the analysis. The break officially begins on December 23rd.
“I expect the Chamber to make this assessment in the next two weeks. And perhaps, in the last working week before the recess, the Senate can consider the PEC”Pacheco told reporters.
The statement was made after a meeting between Pacheco, the ministers of Finance, Fernando Haddad, and of Institutional Relations, Alexandre Padilha, as well as party leaders from the Senate.
Watch Pacheco’s speech:
Pacheco agreed that the process should begin in the Chamber and be reviewed by the Senate. For him, senators tend to support cut measures.
“So far, no resistance on the cuts package. All points are in place”, he spoke.
Asked if it could affect the approval of the measures, he denied: “All matters belong to the State. There is no interference.”
