In order to unlock the tax reform in the Senate, Economy Minister Paulo Guedes said the government can present a “leaner” version of the bill proposing to increase the income tax on the super-rich and reduce taxes levied on companies.
"The time is now. We have already approved this reform in the Chamber [of Deputies], it is now locked in the Senate. We can make a leaner version, taxing the super-rich and reducing the corporate tax,” Guedes said on Monday (April 9), during the presentation of a new tool to monitor investments in the country.
The minister has also proposed the end of all taxation on the industry “to allow Brazil, which has all raw materials, to be a world power”. He said the government is already following this path, and mentioned the reduction in the Tax on Industrialized Products (IPI), promoted via decrees published at the end of last month.
The minister's speech comes after Federal Supreme Court Minister Alexandre de Moraes suspended on Friday (April 6) part of the IPI reduction, at the request of the Solidarity party.
The party had claimed the IPI reduction across the country for products that are also produced in the Manaus Free Trade Zone would harm competitiveness and the development of the region, where a differentiated tax regime, protected by the Constitution, is in force. This includes, for instance, items such as shoes, TVs, stereos, furniture, and toys.
Investment monitor
The Investment Monitor was launched on Monday (April 9) in partnership with the Inter-American Development Bank (IADB) and financial support from the UK government, through a fund dedicated to sustainable development.
The platform provides data and projections on the Brazilian economy and development plans for sectors such as infrastructure, energy, connectivity and sanitation. The idea is that the tool provides details and an assessment of the sustainability of all existing public-private partnership projects in Brazil.
“The platform will bring together relevant information for investors about each available project, historical data, social and environmental aspects, expansion plans, and all the information necessary to help illustrate not only investment projections, but also to support decision making,” Secretary of Productivity and Competitiveness at the Economy Ministry Daniella Marques explained.
