Discussion on the PEC of the Explosion is poorly conducted, says economist

This Friday (25), the president of Insper, Marcos Lisboa, spoke with CNN Brazil and underscored the importance of a tax reform carried out in a responsible manner by the next government.

In Lisbon’s view, the approval of this reform is more than necessary. He explains that the Brazil it has a completely dysfunctional consumption tax scheme, leading to low productivity, low growth, in addition to generating a dispute between the tax authorities and consumers that is negative.

But the specialist questions which tax reform will pass in Congress. “Is it going to a single rate, which many countries have increasingly adopted, or is it going to be something crooked, with several distortions?”.

For him, if you neglect the details, you will allow yourself to preserve the dysfunctional system, so the ideal is to take care of all the details. “The devil is in the details: are you going to go ahead with PEC 45?” he asked.

It is worth noting that PEC 45 was mentioned by Fernando Haddad this Friday (25) at a luncheon promoted by Febraran. He promised tax reform in 2023, starting with consumption taxes. And he was specific: “PEC 45, which unifies the ICMS”. He also said he would review public spending, without giving details.

Lisboa also spoke about A PEC do Issoro and stated that the text has many design problems. He said that the project was done in the wrong way, because a social policy must be careful how to execute it. 🇧🇷[Tem que saber] who receives it and what are the conditions to avoid what is happening right now”, he points out.

Lisbon says that the discussion surrounding the PEC is misguided. “The values ​​are worrying, so I hope that pragmatism and common sense will help to understand [o projeto]🇧🇷 The economist assesses that the country cannot run the risk of having inflation back and a debt rising more than necessary.

Regarding interest, Lisboa highlighted that the rates are very high and if the PEC of the Estoril remains as it is, it will further harm investments, growth and job creation in the country.