Lula rejects higher VAT and says the government will evaluate changes to tax reform

by Andrea
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After being discharged from Hospital Sírio-Libanês, the president Luiz Inácio Lula da Silva (PT) stated in an interview with Fantasticyes TV Globolast Sunday (15), that the government does not want to increase taxes with the tax reform, under discussion in Congress.

“We do not want to carry out a reform to increase taxes in this country. We think that, if Brazil correctly collects the taxes already established by law, Brazil will have enough revenue to take care of this country. There is no need to increase taxes”, he stated.

The president said that the economic team will dedicate itself to analyzing future changes made by the Chamber of Deputies to the text of the main reform regulatory project. The proposal, which creates rules for the collection of three new consumption taxes, was .

Lula rejects higher VAT and says the government will evaluate changes to tax reform

With the parliamentary recess approaching, deputies will resume the debate this Monday. The president of the Chamber, Arthur Lira (PP-AL), canceled all committee meetings to speed up the analysis of priority texts.

After the vote in the Chamber of Deputies, the proposal goes to Lula for sanction.

Lula said that on Thursday, when he returns to Brasília, he wants to talk to Fernando Haddad, Minister of Finance, to assess what can be done.

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The president also said that he believes in an increase in tax collection, just by collecting existing taxes.

26.5% lock

Representative Reginaldo Lopes (PT-MG), rapporteur for the regulation of tax reform in the Chamber, said this Sunday (15), that he will work to respect the 26.5% lock on the rate of the new Value Added Tax (VAT), after the project passed the Senate and now returns for new analysis by deputies.

“We have to preserve the standard rate ceiling in Brazil. We put a ceiling, the ceiling is 26.5%. The most important thing, in my opinion, is to guarantee a reform that does not exceed this limit of 26.5% tax on consumption and services”, he said.

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The government estimates that, as the text stands, VAT would reach 27.91%.

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