Minister says that federal tax revenue has fallen in the last 10 years, but omits that the tax burden has risen in the Lula administration
The Minister of Finance, said on Monday (26.MAI.2025) that the budget balance is the role of all. He stated that there are many expenses that were created without the anticipated compensation, which expands the imbalance in public accounts. Argued that the economic team is honoring the commitments of the “Best possible way”.
He stated that the federal tax revenue fell compared to the level 10 years ago, but omits that the Federal Tax Burden rose in the Management (PT).
Haddad attended this Monday (26.mai.2025) of the event “Nova Indústria Brasil”, In celebration of Industry Day, which was on Sunday (25.MAI). The event is held the week following the announcement of the IOF tax rates (Tax on Financial Operations), which on credit, exchange and private pension.
O Poder360 It showed that the government raised more than $ 70 billion with the tax in real amounts. This is the highest value of the historical series. Haddad proposed an increase in tax that enables revenue.
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Data released in March 2025 by the National Treasury that Brazil’s tax burden was 32.3% of GDP (Gross Domestic Product) last year. The federal government is responsible for 21.4 percentage points of this rate, the highest level in at least 15 years.
Haddad stated that the tax burden increased from 16% in 1964 to 26% at the end of the military dictatorship (1964-1985). The minister said the level rose to 32% after the Real Plan (1994) for currency stabilization, at which he parked.
“Today the federal tax burden, the Federal Primary Revenue, is less than 10 years ago. So, we have to have the understanding that we have challenges to face, especially in relation to the budget balance, which is the role of all.”these.
The minister approached 2 different indicators: the tax burden and the tax revenue. Brazil’s tax burden rose from 20.6% at the end of the government (PL) to 21.4% in 2024. It reached the highest level in at least 15 years.
The net federal tax revenue of the central government was 16.8% of GDP in 2024. It is lower than 10 years, but rose in the Lula administration. It was 16.2% in 2022.
Spending and accountability
Haddad said many expenses were contracted without a source of financing. An example is the exemption of the salary sheet of 17 sectors of the economy. The economic team said that but the revenues defined by Congress are to the government, according to the minister.
“When we look at the bills and see that a lot of expense has been hired without a source of financing, we have to understand that we have to honor the commitments made by Congress, much of them constitutional commitments. We are doing this in the best way possible ”said Haddad.
The minister stated that the federal government is trying to turn the page of one of 2% of GDP. He said this was the negative balance inherited from the Bolsonaro government.
Mercadante Support
The president of the (National Bank for Economic and Social Development), said at the event that Haddad is a “Great Minister of Finance”. And added:“[Ele] It has immense responsibility, a strategic vision and commitment to republican values, with the public good. Has not spared personal efforts. […] We have been giving all the support and will continue like this. Strength and we are together, Haddad!“, These.
Mercadante stated that Congress, entrepreneurs and society have, as well as the Finance Minister, who contribute to the measures aimed at the economy. “We have a very important fiscal challenge for Brazil”said the president of BNDES.
Mercadante was applauded by the audience by saying that Haddad cannot be alone “Holding all this gigantic challenge we have ahead”. He relativized the increase in IOF rates.
“We already had IOF much higher than this one who is there ”he said. The president of BNDES stated that the tax has a monetary contraction role. He said the basic rate, Selic, at 14.75% per year is an “out -of -curve point” and needs to start “have a transition”.
“Selic generates debt. IOF generates revenue. Decreases the problem of the debt-PIB relationship in sustainability ”these.
According to him, Brazil needs to review structural spending and rethink how to increase the efficiency of expenses for those who need it most. The president of BNDES criticized the associations that published a note contrary to the increase in IOF. He stated that Haddad needs to deliver the fiscal goals.
“We need an agenda that cannot be just the Minister of Finance. […] Let’s create a dialogue table. And the business entities, rather than release manifesto… This I have been doing since the time of the academic center, 50 years ago… I think it doesn’t work much. You have to bring proposals. You have to say what is the alternative ”these.
Mercadante suggested, applauded, that the taxes on the betsthe betting houses. “It is an area that needs more revenue“, These.
INDUSTRY
The president of (National Confederation of Industry), Ricardo Alban, said at the event that there is no “Only a unique path to follow”And that“We can no longer think of tax burden ” to entrepreneurs. Stated that there are alternatives, and cited the bets e and big techswhich could enable increase in revenue.
He said he talked to Central Bank President Gabriel Galipolo to deal with the Selic rate. Said there are ways “without compromising monetary policy ” and that it is necessary to be more rational in relation to interest.
