Government has already been warned that the discussion of the IR in the Chamber should generate a drop of R$ 30 to R$ 40 billion in tax collection
Even with the increase in revenue, the government believes that it is still not possible to give up revenue in the discussion of tax reform. the secretary of the National Treasury, Jeferson Bittencourt, during videoconference of the Whom, warned that the time is still for caution. “If we are able to have this discussion now, it is because the expense is under control. It’s because the expense is not following the revenue growth. Does this give us complete degrees of freedom to discuss this tax-loss reform? Never.” The government has already been warned that the reform of the income tax in the Chamber should generate a drop of R$30 to R$40 billion in tax collection. Even because of this, the secretary reinforced that the moment is to ensure fiscal consolidation — since Brazil has always had a high debt that has been growing significantly. “I understand that the IR tax reform is still open and there is a lot to be discussed. We are delivering important fiscal results, helped by revenue and commitment to fiscal rules. But that shouldn’t make us relax. We need the watchful eye.”
He did not hide his concern about the debt, which should exceed 80% of the Brazilian GDP by the end of the year. “We are migrating to around 82%. This is what the next report should show, unless we have a very big surprise, which is unlikely.” The secretary also explained that it is possible to reformulate the program family allowance until the end of the year to pay the R$300 per month — defended by the president Jair Bolsonaro. The government’s idea is to guarantee the payment of the new benefit as soon as the emergency aid transfers finish. Regarding the increase in servers, Jeferson Bittencourt recalled that the 5% readjustment would consume R$ 15 billion and that it will be necessary to choose. With the increase, they may not have the money to readjust Bolsa Família.
*With information from reporter Luciana Verdolin