Finance Minister Fernando Haddad said on Monday that he hopes to resolve this week the issue of changes to the Tax on Financial Transactions (IOF) combined with structural measures that seek to address the country's fiscal issue.
In a conversation with journalists in Brasília, Haddad said that the presidents of the Chamber of Deputies, Hugo Motta (Republicanos-PB), and of the Senate, Davi Alcolumbre (União-AP), showed willingness to discuss structural fiscal measures, not just palliative solutions. He also stated that the issues raised by the presidents of both houses are in line with what the Ministry of Finance thinks.
“Both of them (Motta and Alcolumbre) formally presented us with a set of issues that they would like to discuss with the leaders. This is very much in line with what the Treasury already has on its menu of possibilities. There was a great convergence of purposes,” said Haddad.
Convergence between government and congress in search of structural solutions
Haddad met with Motta and Alcolumbre last week to discuss changes made by President Luiz Inácio Lula da Silva's decree to the IOF tax rates. After the meeting, Motta said that the mood in the Chamber was favorable to the approval of a legislative decree project to overturn the measure. The change was adopted by the government in order to meet this year's fiscal target.
Motta also stated that the government was given a 10-day deadline to present structural fiscal measures. On Monday, Haddad said that he had informed the presidents of both legislative houses that he would not need that deadline. He added that he hopes to address the matter this week.
“The three presidents — of the Republic, of the Chamber of Deputies and of the Senate — concluded that it is worthwhile, this week, before the president’s trip, to look into these issues and make a decision. So for us, the fact that the president is leaving tomorrow night means that we have today and tomorrow to, in harmony with both Houses, because we already know what is on the table, define what will be the cut that will be made of these measures and present it to the three presidents,” said Haddad.
IOF regulation and structural adjustments go hand in hand
“Based on what I heard from Motta and Alcolumbre, I believe we can reach a solution. It is possible to improve the regulation of the IOF. But to do so, it is necessary to combine these changes with structural issues. We can no longer separate one thing from the other,” he said.
Haddad said he will take all necessary measures to meet the fiscal targets established by the Treasury and approved by the National Congress. At the same time, he stated that he prefers to adopt structural measures. For him, this type of solution is capable of resolving the fiscal issue in the long term. For this reason, he avoids resorting to short-term palliative alternatives.
Source: Eduardo Simões | Notícias Agrícolas
