Alckmin says that "the government's expectation is dialogue" regarding payroll tax relief.
The vice-president stated that Minister Haddad's concern about not incurring a deficit is correct and expressed confidence in President Lula's ability to engage in dialogue with Congress.
247 - In an interview with the program Bom Dia, Ministro, broadcast by Canal Gov, of Empresa Brasil de Comunicação (EBC), this Wednesday (7), the Vice President of the Republic and Minister of Development, Industry, Trade and Services (MDIC), Geraldo Alckmin, addressed the issue of payroll tax reliefwhich has been generating friction between the federal government and the National Congress.
The discussion surrounding the tax exemption gained prominence after Congress extended the measure to 17 sectors and overturned President Luiz Inácio Lula da Silva's (PT) veto, triggering debates between the political and economic sectors. The conflict centers on the constitutionality of the incentive, contested by Finance Minister Fernando Haddad, who advocates for the gradual reintroduction of payroll taxes.
During the interview, Alckmin reiterated the government's reasons for opting for a gradual tax reinstatement, emphasizing concerns about fiscal responsibility and achieving the target of a zero primary deficit. "There is an important tripod for the economy: interest rates, exchange rates, and taxes," he highlighted, referring to the need for balance between these factors.
“The concern of [Finance Minister Fernando] Haddad, about not running a deficit, is therefore correct. There were 17 sectors, but they included the municipalities. So the cost doubled from R$ 9 billion to R$ 18 billion. It's a matter of constitutionality. To give up R$ 9 billion, you have to specify what will be cut or what tax will be increased. The concern is fiscal and legal,” he argued.
Regarding the path forward, Alckmin expressed confidence in the power of dialogue, emphasizing that negotiations will resume after the Carnival period. "Our expectation is for dialogue, and President Lula is a master at that," he stressed, demonstrating optimism about the possibility of reaching a consensus that benefits the country's economy.
The government's position on the issue was also commented on by the government's leader in Congress, Senator Randolfe Rodrigues, who It indicated the Executive's willingness to discuss the reintroduction of payroll taxes for the 17 sectors through a bill..