Haddad says that the proposal for exemption is in line with pacification

The Minister of Finance, Fernando Haddad, said this Wednesday (8) that he will meet with the president of the Senate, Rodrigo Pacheco (PSD-MG), to discuss the issue of payroll relief for 17 sectors of the economy and the reduction of the social security contribution rate on the payroll of municipalities with up to 156 thousand inhabitants. At the meeting, the minister will present the proposal on the topic, and will try to demonstrate that “everyone stands to gain” with the resumption of the re-encumbrance, which should be gradual.

The statement was on the program Good morning, Ministerproduced by Gov Channelfrom the Brazilian Communication Company (EBC).

When asked about the negotiations with Parliament to discuss the issue, the minister said that since the preliminary decision of the Minister of the Federal Supreme Court (STF) Cristiano Zanin, to suspend the payroll tax exemption, the government started conversations with the sectors to reach to a consensus.

“This week we made a proposal and the sector made a counter-proposal yesterday [terça-feira]. I thought it was good, even on the recommendation of the president [Luiz Inácio Lula da Silva] and for good political practice, request a meeting with the president [do Senado] Rodrigo Pacheco to make him aware of the proposal from the Ministry of Finance and the counter-proposal from the sectors, which is in line with what we understand, which could be a path to pacification”, he said.

“[A desoneração] It’s something that has been going on for more than 10 years, it’s a fight that has been going on for more than 10 years and we want to put an end to it”, he pointed out.

Haddad also said that the reinstatement is in line with the tax reform carried out by the government, and that after the debate on the consumption tax is concluded, there will subsequently be a reform of taxes on payroll and income.

“Today, you end up paying a lot [imposto], because few pay. From the moment you expand the base, what will also happen with the payroll issue, the Social Security deficit [social] will fall, with everyone contributing equally. It is not appropriate for one sector to contribute and the other to be subsidized. So, we are considering this in terms of consumption, income and payroll. In the case of income, in the previous government, the person who earned two minimum wages paid income tax and that billionaire with a closed fund or a fund outside the country, called an offshore fund, was exempt from tax, he recalled.

“What did Lula do? Let’s put the poor in the budget and the rich in income taxes”, added Haddad.

The minister informed that the government will forward all measures aimed at helping the state of Rio Grande do Sul, which is suffering from heavy rains, by the end of this week, including the renegotiation of the debt with the Union, which should be announced by tomorrow. . The minister also said that the proposal to create subsidized credit lines was also forwarded to the Civil House.

“It is the determination of President Lula, that this week all important acts, obviously there are developments, which concern the decree of the state of calamity that will allow ministries to open extraordinary credits in health, education, whatever is necessary to recover the state. The debt issue was addressed yesterday by the Treasury [terça-feira] to the Civil House the proposal that will be submitted today [quarta-feira] to the president [Lula] and possibly announced by him between today and tomorrow”, he said.

The Finance Minister also signaled that the problem of debts in other states will also be addressed in the meeting with Senator Rodrigo Pacheco.

“This important issue of treating Rio Grande do Sul’s debt will obviously be part of a negotiation that involves states that are not affected by the climate calamity, but that were already discussing with the Treasury the idea of ​​exchanging interest for education. It is an idea that is being debated in the country, which is to reduce the interest rate on contracts substantially, and in return you increase the time young people spend in school. The idea is to expand full-time services in schools. Our youth need professional education to enter the job market properly and with a decent salary, and for this there is no other way than education, preferably full-time, with a professional component”, he said.

The minister informed that the proposal to open a subsidized credit line for the population of Rio Grande do Sul, for the reconstruction of homes should also be published this week.

“We need a line of credit subsidized with great responsibility, but allowing people to rebuild their lives, from a material point of view. Many families lost everything. I saw yesterday, for example, entire cities devastated,” she added.

Copom

Minister Fernando Haddad also said that the Monetary Policy Committee (Copom) of the Central Bank (BC) is expected to maintain the 0.5% cut in the basic interest rate, the Selic. The new rate will be announced this Wednesday. There is a signal from the BC that it may reduce the pace of Selic cuts.

“I have no information about what the final decision will be [do Copom], especially because debates are taking place at the Central Bank at the moment. What I do know is that the interest rate remains one of the highest in the world and that March inflation and the April preview behaved very well,” he said.

“Inflation fell below the target ceiling, it is within the band, with inflation behaving well in the last two months. So, if you ask what I expect, I expect an interest rate cut today, so that we can continue building a healthier economy,” he said.