Taxation of profits and dividends will allow tax reductions for the poorest, says Guedes

The Minister of Economy, Paulo Guedes, said this Thursday (18) that, with the approval of the tax reform and the implementation of the measure that provides for the taxation of profits and dividends of large companies, it will be possible to adopt actions that generate a direct impact. reduction of taxes for the lower income population of the country.

“It has already been approved in the Chamber, the Senate is missing. Who knows with the president [Jair Bolsonaro] being elected, we do it this year”, said the minister, during an event held by BTG Pactual this Thursday (18), in São Paulo.

Guedes also said that “the ‘timing’ of the reforms is politics”, adding that, at the moment when inflation started to rise, the government worked for the independence of the BC (Central Bank), and for the bankruptcy law, when the companies indicated that they would go through a period of greater difficulty.

“At [reforma] we lost, it passed”, acknowledged the minister. He stated, however, that the increase in collection was used by the government to promote a reduction in indirect taxes, citing the IPI (Tax on Industrialized Products) and ICMS (Tax on the Circulation of Goods and Services). “We never lost the north. In the midst of confusion, it’s important not to lose your compass.”

The minister again stated that he intends to eliminate the IPI, which, according to him, is the “tax on mass deindustrialization in Brazil”.

Guedes also said that Brazil could be one of the biggest beneficiaries of the reconfiguration of production chains underway in the economies of developed countries, in the wake of the pandemic and the War in Ukraine.

The friendly attitude towards most major economies, as well as the geographic proximity, makes the country a potential partner, said the minister, adding that, with the auction of the airports this Thursday, Brazil has already committed a volume of around R$ 900 billion in investments by the private sector over the next ten years.

“We are very well positioned. It’s just up to us. Just don’t mess up. This has to do with the vote,” said the minister.

Guedes also said that, if it weren’t for the “noise” caused by political volatility due to the elections, the real should be much more valued compared to the current level – the American currency ended the session this Thursday quoted at R$ 5.17.