Administrative and tax reforms “will remain on the agenda”, says Lira

The President of the Chamber of Deputies, Arthur Lira (Progressistas-AL), said this Tuesday (10) that the reforms administrative and tax “will remain on the agenda for the day”, but cited difficulties in advancing the discussions due to the election year.

“We have to deliver the administrative reform, which is ready in the commission and needs the support of all Brazilian businessmen and more explicit from the government, because a country like ours is restricted, because we don’t give up the spending ceiling, but we need a spending floor,” he said.

He cited a government “reflux” on the subject due to the election year , and an intensification of the opposition, which hinders the progress of the reform. Regarding the tax, Lira said that it is necessary to finish it, since only a few points were voted on.

“We charge the Senate weekly to take a stand on PEC 110. It is a difficult year, but the Chamber will function normally until July 15, before recess, and will have intensive weeks in August and September before the election”.

The speaker’s speeches come a few days after the Minister of Economy, Paulo Guedes defend the approval of the tax reform later this year , albeit in a simpler version. In his view, the cut of the Tax Burden on companies and taxation of the super-rich would be enough to make the country more attractive right now.

“We can make a leaner version, taxing the richest and reducing corporate taxes. This is what Brazil needs to receive investments from abroad”, he said, recalling that the text of the Income Tax reform suggested by the Executive was approved in the Chamber, but stalled in the Senate.

Still on the reforms of the Brazilian economy, Lira stated that, in his view, the next National Congress who will be elected in 2022, “will be reformist, liberal, center-right that will set a course for Brazil to continue on the path of the necessary transformations that the population demands and needs”.

In an event held by the bank BTG Pactual in U.S Lira also defended that Brazil discuss a change of political system for the semi-presidentialism in which the president would choose a prime minister who would need to be approved by Congress.

According to him, the country is already a semi-presidential system in fact, but not in law.

“The Constitution made is parliamentary. A Congress that can undo an act of the Executive in the voting of a PDL, is a lot of constitutional strength, and it gets distorted when Congress only wants bonuses, congressman only wants space in the government, positions in the government, and to vote on matters that resonate well with the electoral base. . When it comes to voting on difficult matters, it’s a pity for the government,” he said.

In Lira’s opinion, the current political system makes a president think before supporting and signing controversial projects in election years so as not to threaten his reelection.

The scenario would be different in semi-presidentialism, he argued. “A prime minister chosen by the president, voted on by Congress, who will need 100,000, 80,000 in his base to return to Congress. It would be a government of co-responsibility, with burdens and bonuses, that’s what Brazil needs”.

The deputy pointed out that any changes under discussion at Chamber currently it would only be valid from 2030.

“If it is the will of the population that we have a serious discussion about the role of the Executive, Legislative and Judiciary, which are very ingrained, we will put it up for discussion. Brazil needs to re-discuss its model, which will never allow large-scale structural reforms to be fully implemented,” he said.

The politician also said that the “main” problem currently in Brazil is the budget structure, with about 96% of the Budget linked to specific expenses and cannot be changed.

“If we had the Budget decoupled, Brazil would be able to deal with the movement of illegal deforestation much more deeply, which is what hurts us worldwide”, he defended.

During his speech, the deputy also defended the country’s electoral system, with the use of electronic voting machines: “the system is reliable, it needs adjustments, but it is important that we have political tranquility in the election, and we will. Brazilian institutions are very strong, they work fully”.

For Lira, Brazil faces a natural polarization in election years, but the “political center” would be carrying out a “national moderation” between the institutions and their “difficulties of coexistence”.

“We have always prioritized and fought for powers to contain themselves, to be restricted to their institutional spheres, so that Brazil can fully function as a stable, strong democracy, with strong institutions, and that they have a way forward whatever the electoral process, the As a result of this year 2022, Brazil will know how to play its role as a leading global player”.