Haddad: priorities for 2023 are tax reform and a new fiscal framework.
"To have the fiscal framework, you need tax reform," says the likely Finance Minister.
247 - The government of President-elect Luiz Inácio Lula da Silva promised not only to include the poor in the budget, but also the rich in income tax. Therefore, the discussion about a new fiscal framework will be accompanied by a discussion of a new tax system. This is what the likely Finance Minister, Fernando Haddad, has indicated.
“To have the fiscal framework, you need tax reform. Everyone needs to understand that tax reform is necessary, now. We've already spent 20 years on this issue,” Haddad told journalists covering the transition. According to Haddad, discussions about the reform and the new framework “can go hand in hand,” but the two proposals “have to be reconciled,” according to... report by Valor Econômico.
“They can even be approved together. But they cannot contradict each other,” he said. “If it depends on the Lula government, it will be approved next year; it will be a priority.” According to Haddad, the new fiscal framework “will be all the more solid, stable, long-lasting, and durable the more security we have from the point of view of tax reform.”
“Direct taxes have to come later because they have a significant impact on states and municipalities. Direct taxes are not shared,” he said. “The regressivity of taxation comes into play in a second stage, when we deal with income and wealth.”
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