After meeting with party leaders, Haddad confirms MP to review tax on financial operations, fixed income taxation and bets, as well as cutting tax spending
In an articulation held on Sunday night (8), the federal government announced a set of measures to replace the decree that raised the published on May 22. The meeting took place at the official residence of the in Brasilia, and brought together ministers and party leaders of the Allied base. MP will replace decree and bring new rules. Among the defined actions is the sending of a provisional measure with changes in tax policy. According to Finance Minister Fernando Haddad, the MP will revoke the original decree and implement new rules with immediate effects.
The main measures announced are:
• Increased rate on sports betting (BETS), with GGR (Gross Gaming Revenue) from 12% to 18%-details should be presented later this Monday (10);
• 5% tax on all fixed income securities that are now exempt from income tax such as LCI, LCA and others. Despite the charge, these assets will continue to be considered encouraged;
• Inclusion of operations at risk at the scope of measures;
• Minimum reduction of 10% in tax expenses of an infraconstitutional nature, with deliberation of the National Congress.
Proposal will be taken to Lula
According to Haddad, the new design will be taken to President Luiz Inacio Lula da Silva as soon as he returns to the country. The goal, according to the minister, is to give more “comfort to the tax frames” and respond structured in a pressure on budget compensation measures. “The best way is a proposal that avoids tax gambiarras and promotes fiscal predictability,” Haddad said after the meeting.
Administrative Reform will be presented in July
The mayor, Hugo Motta (Republicans-PB), who led the meeting, said the administrative reform will be presented in early July and is already being discussed with the Senate. The expectation of the government is that part of the changes – especially those related to primary spending and tax exemption review – are contemplated in the proposal. The idea is to simultaneously attack the tax and primary expenses, with special attention to the expenses contracted by previous management that continues to press the current budget.
Political leaders endorse dialogue
In addition to Haddad and Motta, attended the meeting:
• Gleisi Hoffmann, Minister of Institutional Relations;
• David Alcolumbre, President of the Senate;
• Jaques Wagner, leader of the Senate government;
• Party leaders of PT, MDB, PSB, União Brasil, Progressives and PSD, among others.
Alcolumbre classified the meeting as “symbolic” and stated that dialogue with the government will be fundamental to advance in structuring reforms. Government has until June 10 to present text. Hugo Motta has established a deadline: if the government does not formalize proposals until June 10, the Chamber may guide a Legislative Decree (PDL) project to overthrow the IOF decree.
