Market reacts to Haddad’s poorly detailed tax package; financial agents say that the government inflated savings expectations of R$70 billion
The dollar ended this Friday (29.Nov.2024) at R$ 6,001the highest closing level in history. The North American currency now accumulates the following variations:
- 0,19% in the day;
- 3,2% in a week;
- 3,8% in November;
- 23,7% em 2024.
The dollar had closed on Thursday (Nov 28), the day before the record level. It was quoted at R$5.99.
The market reacts to the fiscal package announced by the president’s economic team (PT). The biggest doubt is regarding the expectation of saving R$70 billion in 2 years. Financial agents say the government inflated the projection.
It also drew attention that the government announced exemption from Income Tax for those who receive up to R$5,000 – a measure that harms revenue collection. It should start to take effect. The Minister of Finance said that the loss of money will be compensated by the increase in charges for people with incomes above R$50,000, but did not give sufficient details.
Haddad a ceiling for the adjustment of the minimum wage. It will be 2.5% above the INPC (National Consumer Price Index) for the 12 months up to November of the previous year. It’s the most credible measure in the package. Previously, it was based on the variation in GDP (Gross Domestic Product) from the previous 2 years.
Understand below all the measures that the government wants to implement:
Read more details about the measures designed by Haddad.
The central objective of the package is to balance public accounts and meet fiscal targets. The government wants spending to equal revenues in 2025 (a the deficit is zero). In the following years, the target is to end up with accounts in the black. In practice, it is necessary to increase revenue and reduce expenses. Little was done on the side of the 2nd option, even with Lula 3 almost halfway through.
Read more:
