BRASILIA (Reuters) – Vice President Geraldo Alckmin on Monday defended a drop in interest rates in the country and said the government will take the necessary measures to make it happen.
At an event organized by the National Federation of Engineers, Alckmin, who is also the Minister of Development, Industry, Commerce and Services, said that when the cost of capital is too high, as is the case in Brazil, it stifles investments in the country.
“It is important to reduce the interest rate. Why is the interest rate so high? Is it a fiscal wedge? So I will remove taxes. Is it a lack of competitiveness? We are going to increase the dispute between banks. Is it fiscal insecurity? Let’s provide fiscal security”, said the vice president.
Alckmin defended the MP on fuel recharging, released last week. According to the vice-president, by increasing the cost of gasoline and excluding gas and diesel, which have a direct impact on inflation, and raising almost nothing to ethanol taxation, the government recovers revenue without major impacts on prices, and even prioritizes more energy clean.
The vice-president also stated that, within the country’s competitiveness agenda, it is necessary to carry out the tax reform this year.
“The tax madhouse we live in is not possible. Everything will end up in court,” he said. “This is a central reform, and it has to be fast. Take advantage of the first year. The previous government missed this opportunity.”
(Reporting by Lisandra Paraguassu)