With 109 deputies and four ministries in the Lula, União Brazil and PP government announced on Wednesday that they will reject Minister Fernando Haddad’s fiscal package (farm) if there is no cost cut. The statement was made in a joint statement of the presidents of União Brasil, Antonio Rueda, and PP, Ciro Nogueira.
– If the government does not present its part of wiping the machine, we will not accept this account. Too tax is poison, not medicine. Let’s unite the benches and close a question against any tax increase proposal. With each new budget break, the government spends more and more and comes back with new taxes. We will only accept to analyze any fiscal discussion if the expenditure column is at the center of the debate, ”Rueda said.
União Brasil has 60 deputies and indicated the Ministers of Communications, Frederico Siqueira, Son; Tourism, Celso Sabino, and regional development, Waldez Góes. The PP is at the head of the Ministry of Sport, with André Fufuca, and has a bench of 49 deputies.
Rueda also said that the federation formed by União Brasil and PP will support the return of the Provisional Measure (MP) that the government intends to present with part of the measures. Nogueira added that he lacks “transparency, predictability and competence” to the government:
– We draw a risk on the floor, who is against or in favor of increasing taxes in the country and who is in favor of efficient management.
Title taxation is barrier
According to parliamentarians heard by the globe, the taxation of fixed income securities, which today are exempt from taxes, as a form of compensation to have the size of the reduced increase, is the largest obstacle.
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Haddad has announced that the MP will affect investments that are now exempt from Income Tax (IR), such as Real Estate Credit Letters (LCI), Agribusiness Credit Letters (LCA). According to the minister, these titles will continue to be encouraged, with a 5%rate. This Tuesday, the PL has already spoken out against the measure. Republicans, a party that also holds office in the Esplanade of Ministries, will meet this Wednesday to define a position on the subject.
– All exempt titles will have a 5%charge. They will no longer be exempt because they are creating a distortion in the Brazilian credit market, including for the National Treasury. There are companies that for this exemption have a lower credit than the National Treasury – said the minister.
Another point announced by Minister Fazenda is the revision in 10% of tax exemptions that are not provided for in the Constitution. There is an estimate that these exemptions cost $ 800 billion a year. These changes must only have an impact from 2026.
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Under the agreement, the government has pledged to issue a new decree to reduce the increase made originally. Part of the loss of revenue should be compensated with increased taxation for companies that explore online games, called Bets, from 12% to 18%. This point is considered “reasonable” by the members of the cited parties.
The forecast of the government is that, with the reduction in current IOF rates, the collection is about one third of the R $ 20 billion initially provided for by the government.
