SÃO PAULO, SP (FOLHAPRESS) – The Minister of Finance, Fernando Haddad, stated this Friday (29) that the leak of the measure that provides for the expansion of the income tax exemption range for profits of up to R$ 5,000 in the tax package before the statement made on national television last Wednesday (27th) led to a misreading of what was proposed.
“When government information is leaked without the disclosure being done with pomp and circumstance and respecting the citizen, you will have reading problems. Then there is no point in complaining about the market,” he said in an interview with Record News.
“What bothered me, if you want to call it a defeat, you can call it, is that it wasn’t explained correctly,” he added.
He again pointed out the possibility of further cuts in the future. According to the minister, if necessary, the government will have to review measures so that the trajectory between expenses and income follows the rules of the fiscal framework.
“If we identify risks to this trajectory, we will have to go back to the table and see what adjustments will have to be made.”
Earlier this Friday, at a luncheon promoted by Febraban (Brazilian Federation of Banks), Haddad said that the set of measures is not the “grand finale.” According to him, in three months the government could discuss the cuts package, if necessary.
Even in the interview with Record News, the minister said he was more comfortable with Gabriel Galípolo on the board of the Central Bank. According to Haddad, the decision to intervene in the dollar is always technical. This decision is not a good one to make outside of ‘in’ [de dentro do BC]”.
Galípolo, who is director of Monetary Policy of the BC, stated this Friday that he spoke with Roberto Campos Neto about a possible intervention in the exchange rate, but reinforced that the monetary authority will only intervene if it notices any dysfunction in the market.
With expectations frustrated, the market reacted negatively to the package announced by Haddad. This Friday, for the first time in history, the dollar closed at R$ 6, renewing the historical nominal value record for the third consecutive day. The currency hit a price of R$6,115 at the day’s high, before falling in the early afternoon in reaction to calls for fiscal responsibility by congressional leaders.
The presidents of the Senate and the Chamber of Deputies, Rodrigo Pacheco (PSD-MG) and Arthur Lira (PP-AL), respectively, spoke out in favor of spending cuts and fiscal austerity measures, but criticized possible changes in revenue collection. tax.
This Friday (29), parliamentarians said that the proposed exemption from Income Tax (IR) for those earning up to R$ 5,000 should not be presented in the near future by Congress.
Last Wednesday night (27), Minister Fernando Haddad made a statement, through which he announced measures such as reviewing the rule for granting salary bonuses, regulating super salaries, tightening the rules to access the BPC (Continued Quota Benefit) , changes in the military system. pension rules and permission to block parliamentary amendments to comply with the fiscal framework. Read the full statement.
In addition to the package, Haddad also announced the expansion of the IR (Income Tax) exemption range for those earning up to R$ 5,000. To compensate for the measure, the government will also propose a minimum rate of up to 10% in the IR (Income Tax) for those who earn more than 50,000 reais per month, the equivalent of 600,000 reais per year.
