Federal Deputy Carlos Zarattini (PT-SP) hopes to be officialized as rapporteur of the provisional measure of spending cut next week. Initially, he would be the rapporteur of the Budgetary Guidelines Law (), but the mayor Hugo Mota passed the rapporteur to Deputy Gervásio Maia (PSB-PB) and guaranteed Zarattini the most important MP rapporteur for the Lula government today.
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Even with, Zarattini hopes to have no delay in the installation of the Special Commission of the Provisional Measure. “The decree is a theme, a subject, dealing specifically with IOF. This provisional measure deals mainly with income tax for financial investments and legal entities. So, there are two different topics,” he told the Infomoney.
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Without the approval of the MP, the deputy says that the government has no way to close the accounts and would have to contingency, including parliamentary amendments. Therefore, he bets on an agreement for approval. But you know it will be pressure, especially from sectors with strong influence in Congress, such as agriculture.
About the bad climate between government and congress, he believes it is not a permanent thing. “I think in the end, they will be talking again and the thing will resume. One of the reasons for the great complaint is the payment of amendment,” says the petista.
The deputy also believes that the base in Congress will follow with the government, regardless of next year’s elections. “President Lula’s agreement with the parties was from governability, no electoral agreement was made, it was made a governance agreement. So no one there went to the government to guarantee the election of 2026, it was to guarantee governability,” he explains.
Check out the full interview of federal deputy Carlos Zarattini to Infomoney:
Infomoney – With the judicialization of the IOF, do you believe that the provisional measure (MP) of spending cut will be in the background and should it take longer to begin to process?
Carlos Zarathini -No, our idea, if David Alcolumbre (União-AP) appoints the president soon, would try to install the commission next week and soon do the work plan. The idea is to work on this plan as early as August, to do public hearings, listen to the opinion of the various sectors and then work in September the report, the votes.
IM “But don’t you think one thing interferes with the other?” Until a decision on the Supreme IOF does not come out, is it harder for MP to walk?
CZ – Well, hard everything is. But let’s say: it won’t be neither less difficult, because the decree is a theme, a subject, it is specifically the IOF. This provisional measure is mainly deals with income tax for financial investments and legal entities. So they are two different themes. And comes a third project that is the tax benefits, which has not yet arrived. Even has a project by Senator Esperidião Amin (PP-SC), which deals with this too and can be enjoyed. The rapporteur who is designated may include in the project what the government intends to do.
IM – You cited three necessary proposals for the government to close the accounts. If one of these measures is not approved, what can the government do to close this year in blue?
CZ – If you do not have these approvals or if any of them are not 100% approved, the government will have to make contingency. It will close the way it gives, because otherwise it commits an irregularity. What everyone here has to know is that if it has contingency it will affect health, education and amendments as well. And that goes for everyone. For example, if IOF falls, it is $ 3 billion of amendments that are already going to the drain. It will have to be compensated in some way. It may be another form of compensation, but no one has anything in view beyond what is already there.
IM – What can you negotiate within the MP? Where do you think it is possible to give in and what can not give up at all?
CZ – We will now survey what has potential for collection of each of the seven measures of the MP. What is the potential of each. So, from this potential, let’s calculate where it is more sensitive and where it is less. For example, if you have a measure that collects a lot, we can’t move much of it. It will depend on this, first. Second, also the pressure of the various sectors, the political force of each one, to make a negotiation. Our goal is to approve the provisional measure in its essence, what is the main one. Never approve 100%, but changes have to be within this scope of the collection.
IM – Sectors such as agribusiness and construction are affected and must work against MP. Where do you expect more pressure from?
CZ – Agro people politically are very strong here in the House. What we have to see is that it does not everything goes to agro, only 30% get there. It has letters that are issued by a large network of snack bars, for example, that does not plant a lettuce. It has real estate credit letters that are launched by bank and backed by an agency building. So it’s not everything that goes to Agro, not everything that goes to the real estate. Let’s show it all.
IM – The Rapporteur of the Income Tax MP, Deputy Arthur Lira, would be looking for a way to exempt the income range, which would go from $ 50 to $ 150,000. Can this compensation generate any conflict with the spending cut MP?
CZ – The Income Tax MP exempt who earns up to $ 5,000 and starts to charge those who earn over $ 50,000. The idea is to be balanced, that is, it is not to collect more, is to lose on one side and win the other. And in this case, we are moving something that is legal entity and applications tax: they are different things. Here the goal is to increase the collection and not balance. The purpose of the other project, of the individual’s income tax, is to exempt the middle class and increase the taxation of the rich, who pay little tax.
IM – Do you believe that today you have a climate to approve the MP in Congress? Or will this have to be worked over the months?
CZ – No, I think it will have to be worked. We have to discuss a lot, show the importance of each measure and the provisional measure as a whole. Congress has no interest that the budget will come down, that the economy will go down, that the public machine stops at certain points. Defense Minister José Múcio, for example, is complaining that he has no money to put the planes to fly. No one wants this to happen. We want normality. For this you need to have a resource.
IM – We know that each day is one day, that you work, if you negotiate, but today the government’s relationship soured here with Congress. Do you agree?
CZ – Yes, but I don’t think it’s permanent. In the end, there will be conversations. One of the big complaints is about the payment of amendments. Few people talk, but what is taking here, in fact, is the issue of payment of parliamentary amendments and other government commitments that sometimes take time to leave.
IM “Do you believe there is an anticipation of 2026, so part of the base has already jumped out and is working on the campaign?”
CZ – I don’t think this is the reason. Many people have made it clear that they will march with another candidate, but they are still part of the base and have ministries. Why will someone who has a ministry work not to have a resource for the government? It makes no sense because it is possible to remain in this ministry until the eve of the election. And, remembering: no electoral agreement was made, but governability. So no one there went to the government to secure the 2026 election, it was to ensure governance.
IM – If this MP is not approved, how will the government close the account and comply with the commitments?
CZ – Actually, the account will always close, but because it will have contingency. The problem is not closing the account, the problem is that you stop the machine, stop government activities – and that no one wants. It’s a heavy cost out, because the population will complain about paralysis, delays, problems and it’s a cost inside, as no political force wants to stop doing what it had planned.
