Reduction of load by R$ 30 billion ‘no problem’, says Guedes

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The Minister of Economy, Paulo Guedes, stated this Wednesday that the tax burden reduction at R$ 30 billion foreseen in the preliminary report by deputy Celso Sabino (PSDB-PA) on the tax reform, “there is no problem” due to the increase in tax collection this year.

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In a live broadcast by the newspaper Valor Econômico, the minister points out that there was an increase in the collection of R$ 100 billion, above the forecast, which would be enough to offset the reduction in taxes.

— This increase in tax collection is structural, it’s just the level of GDP. Even if the GDP grows zero from now on, the return of the GDP until now means an increase of R$ 100 billion above the forecast. So if we miss the R$ 30 billion in the reform, there’s no problem, it’s already paid, before starting the reform, it’s already paid,” said the minister.

Guedes stressed that he would like the impact of the reform to be neutral, but he believes it is better to err on the side of a reduction in the tax burden than an increase. Calculations by the Internal Revenue Service on the first version of the reform predicted an increase in revenue.

— As liberals, we prefer to run the risk of erring on the side of reducing loads, rather than increasing the tax burden. That’s what we did. With the 5 percentage points (on corporate income tax), there could be an increase net of taxes. With 10 percentage points, the rapporteur himself thinks based on the accounts they made, including our Revenue, that there could be a reduction of up to R$ 30 billion. This is not worrying us,” he stated.