Aid Brazil of R$ 600 and correction of the IR table can be offset with tax on profits and dividends, says Guedes | Economy

The Minister of Economy, Paulo Guedes, said this Thursday afternoon (1st) that the Auxílio Brasil worth R$ 600 and the reform of the Income Tax table can be financed through the tax on profits and dividends.

On Wednesday (31), the proposal for the 2023 Budget sent by the Jair Bolsonaro government to the National Congress does not include a forecast of increase for Auxílio Brasil – the average amount included in the text is R$ 405, below the R$ 600 paid currently. The proposal also did not provide for the correction of the Income Tax table.

“No one can be ashamed of being rich, they have to be ashamed of not paying tax”, said Guedes when participating in an event in São Paulo about the possibility of taxing profits and dividends.

Budget provides assistance of R$ 405; text sent to Congress does not fulfill Bolsonaro’s promise

According to Guedes, the tax on profits and dividends can yield BRL 70 billion a year to the country, which would be enough to cover the cost of BRL 52 billion with the increase in the value of Auxílio Brasil and BRL 17 billion with updating the IR table.

The taxation of profits and dividends paid by companies to their shareholders has already passed through the Chamber of Deputies, but has not yet been evaluated by the Federal Senate.

In the morning, Guedes said this Thursday (1st) that, to ensure the maintenance of Auxílio Brasil in the amount of R$ 600 in 2023, the government may choose to extend the state of emergency that is in force.

In São Paulo, Guedes once again celebrated the growth of the Brazilian economy in the second quarter – the Gross Domestic Product (GDP) increased 1.2%, above market expectations.

“We had great news about the GDP. In the semester, Brazil grew 2.5%, which was the most optimistic target (of analysts),” he said.

But he criticized economists who are betting on a more difficult scenario for the economy next year: “They are making the doom roll,” he said.

  • Services follow GDP ‘star’, and entrepreneurs make cash while waiting for 2023 more difficult
  • Industry has a strong increase in GDP in the quarter, but the sector still suffers from losses and unemployment

Brazil’s GDP advances 1.2% in the 2nd quarter, in its fourth consecutive high

In the minister’s assessment, the Brazilian economy should grow more next year, because the fall in inflation should allow the reduction of the basic interest rate (Selic) – currently, at 13.75% per year.

“We’re only growing 2.5% this year, because interest rates are up there, there’s a handbrake on,” he said. “(Next year), the dynamic will be different.”

In the Focus report, prepared by the Central Bank, the economists consulted project a GDP growth of only 0.37%.

The article is in Portuguese


Tags: Aid Brazil correction table offset tax profits dividends Guedes Economy

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