BRASILIA (Reuters) – Finance Minister Fernando Haddad said this Wednesday that the tax reform proposal, which is being discussed in Congress, will “give a credibility shock” to the economy, in addition to favoring workers and exports and unburdening the Judiciary.
“This tax reform will bring transparency, efficiency, and credibility to our economy. It will attract investment, it will relieve our exports, it will favor low-income workers, who will be able to consume products at a better price. and more transparent”, said Haddad, in a ceremony at the Planalto Palace for the signing of the decree to expand basic sanitation with President Luiz Inácio Lula da Silva, ministers and governors.
Haddad thanked the 27 governors for unanimously supporting the reform and highlighted that the drafting of the text, according to him, will take into account “suggestions for improving society as a whole so that we can have a secure tax system, a secure tax base, not just for the Union”.
The minister also pointed out that the pace of trials in the judicial system should be accelerated with the approval of the reform. According to Haddad, 40% of the lawsuits in progress are tax matters.
The two proposals under discussion on the subject, which were already being discussed in Congress, provide for the unification of taxes on goods and consumption. One of them, pending in the Chamber, stipulates the adoption of only one tax, while another, under analysis in the Senate, proposes a dual taxation, with a VAT for the Union and another for the other federative entities.
On Tuesday, the program director of the Extraordinary Secretariat for Tax Reform of the Ministry of Finance, Rodrigo Orair, said that the debates around the tax reform are moving towards the implementation of a dual VAT, divided between a Contribution of Goods and Services ( CBS) and a subnational Tax on Goods and Services (IBS), jointly managed by states and municipalities.
(By Victor Borges)