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Those who bet that Lula would overrule Haddad were wrong, says Bohn Gass regarding the reintroduction of taxes.

"Being responsible, they decided together to seek a balance and bear the costs of it," the congressman emphasized.

Bohn Gass (Photo: Pablo Valadares/Chamber of Deputies)

247 - Congressman Elvino Bohn Gass defended this Monday (27) the measure announced by the Lula government to resume federal taxation on fuels. 

"Finance Minister @fernandohaddad defended the reintroduction of federal taxes on fuels. Those who bet that @LulaOficial, for fear of losing popularity, would overrule Haddad were wrong. Responsiblely, they decided together to seek a balance and assume the costs of this," stated the Workers' Party congressman. 

>>> José Paulo Kupfer: Lula showed support for Haddad, and the market 'made a lot of noise about nothing'

According to the Ministry of Finance, revenue will be recovered by 100% with the return of fuel taxation. Just as before the exemption, fossil fuels will be taxed more than biofuels.

According to the ministry, the decision follows the government's strategy of basing itself on the principle of environmental sustainability, in addition to recovering revenue for the federal treasury. The ministry also said that the measure protects the consumer, but did not go into detail about how the tax recovery will be carried out.

The announcement represents a victory for Haddad amid a clash of views between the economic team and factions within the government and the PT party, who see the reintroduction of taxes as unpopular and inflationary.

With the full reinstatement of taxes, the economic team will have an additional 29 billion reais in federal coffers in 2023. This measure is part of a set of actions planned by the ministry to reduce this year's primary deficit to less than 100 billion reais. (With Reuters)