“An interventionist model corrupted the Brazilian economy”, says Guedes

Guest of the Boa Tarde Brasil program, on Rádio Guaíba, this Monday afternoon, the Minister of Economy, Paulo Guedes, advocated a change in taxes. “Cascade taxes on payroll are job killers. We want to end the IPI (Tax on Industrialized Products). We are going to reduce taxes until the Brazilian State reaches the size that the population needs”, he highlighted.

The minister stated that “an interventionist model corrupted the Brazilian economy and now we are changing the axis. Of course, there is a place for the public sector in this. I want to commend the civil servants who also made their sacrifice”, he added. Guedes stressed that 2022 will be the first year of primary surplus in 13 years. “We are saving states and municipalities. Everyone was broken. And we, in the midst of the crisis, managed to reverse that”, he guaranteed.

Guedes awaits what he calls a fiscal “unpedaled” by the National Bank for Economic and Social Development (BNDES) of the pedals received in previous administrations. “The Bank is helping us, but they owed R$80 billion to R$90 billion. We are the first generation that faces a war and will return the government spending less than when it arrived. We sold BRL 260 billion in state-owned companies, ‘deleveraging’ BRL 240 billion from public banks. This all reduced the debt”, said the minister, who highlighted the fall in unemployment in the country. “It was at 14.9%, but we want to drop from 8% by the end of the year”.

According to him, Brazil did not reach a Tax Reform because of the Federal Senate. “We were unable to carry out our Tax Reform. We would readjust the table, increase the income tax exemption threshold for the weakest and we would tax the super rich. There are only 60 thousand CPFs that have exemption on more than R$ 300 billion in profits and dividends. And we were only taxing those who earn more than R$400,000 a month in dividends. That is, if you take out half a million a month in dividends, you pay 15% on R$100,000, which is the excess. That’s less than 3%. Nobody has to be ashamed to be rich in Brazil. You have to be ashamed of stealing or not paying tax,” he said.

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According to the minister, as the reform was not carried out, the adjustments are being made “little by little”. He cited as an example the reduction of “indirect taxes, which take away the competitiveness of Brazilian industry” and which make Brazil have to import inputs as a producer and having natural resources. “We are reducing these taxes and the income tax is going up, by not readjusting the tables. Even due to the need to transfer R$ 200 more in Auxílio Brasil, we need to tax profits and dividends”, commented the minister.

For Paulo Guedes, the federal government promoted an “invisible administrative reform”. “We let 40,000 people retire and digitized 4,000 services. Proof of life cases. Retirement also, driver’s licenses. We improve productivity,” he opined. The minister asked the population to believe in Brazil “Whoever is wrong is who has made catastrophic predictions. We’ve got it right. Today, we are the largest investment frontier in the world,” he concluded.


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