Former São Paulo mayor Fernando Haddad said this Wednesday (30) that the expectation of the new government is to submit a proposal for a new fiscal framework next year, with the approval of a tax reform.
Quoted to be Minister of Finance in the Lula government, Haddad explained that there is no time for this discussion at the moment, along with the Transition PEC, but that the Proposed Amendment to the Constitution will give the new government time to have this discussion.
“With the PEC, we are gaining time to open a discussion with society, and we have a good perspective of approving the tax reform next year. The ideal is that, with the tax reform, we simultaneously submit to Congress a new fiscal framework, which will be coherent with the reform that will have been carried out”, said Haddad, in a quick conversation with journalists after participating in meetings with president-elect Luiz Inácio Lula da Silva.
The Lula government’s transition team wants to approve the PEC to guarantee resources for the payment of the Bolsa Família of R$ 600 next year, in addition to R$ 150 for children up to six years old in the families benefited by the program, and a recomposition in areas of the Union budget for 2023.
Haddad joined the Transition Economics Technical Group this week, at Lula’s request, in yet another sign that he should be appointed to the Treasury. The initial expectation was that the announcement would be made this week, but sources told Reuters that the president-elect preferred to delay the nominations for a few more days and announce more names at once.
Haddad also said that Lula should go to the United States for a meeting with the American president, Joe Biden, even before his inauguration. That was the president-elect’s intention, but the idea had been discarded and the visit was being scheduled for the first months of 2023.
However, according to Haddad, there is now an invitation for the trip to be made before Christmas.
On Monday, Lula receives, in Brasilia, two envoys of the US president, the national security advisor, Jake Sullivan, and the advisor for Latin America, Juan Gonzalez.
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