Home Uncategorized Government has MP ready to bring semiconductor factories to Brazil, says Guedes

Government has MP ready to bring semiconductor factories to Brazil, says Guedes

Government has MP ready to bring semiconductor factories to Brazil, says Guedes

The Minister of Economy, Paulo Guedes, said this Wednesday (28) in the “Panic” program, that the federal government has a Provisional Measure to encourage the implementation of semiconductor factories in Brazil. Since the Covid-19 pandemic, semiconductor production has suffered a serious crisis that has mainly affected the global automobile industry.

“We went outside to talk to the Japanese, because everyone has their eyes on a semiconductor factory, we want it in Brazil. We are going there and bringing the productive arrangements. 75% is produced in Taiwan, which is a long way away, and now has political risk. Let’s put no income tax, create incentives. Everyone is in the greatest excitement, we already have an MP ready to pull the trigger at any moment.”, said Guedes.

The minister also highlighted Brazil’s potential in several industrial sectors and emphasized that the government intends to “reposition the industry in Brazil”.

“We missed the first industrial revolution, 5.0 is coming. In this one, we’re going to board. Cheap energy, world energy security, solar energy, energy, mainly wind power, wind power Brazil dominates.”, the minister pointed out.

Tax reform

Paulo Guedes also commented on the tax reform that, according to him, is blocked by the Senate. According to the minister, the proposal was approved in the Chamber by a large majority, including “the support of the left”. During the speech, Guedes criticized a small portion of the right whom he called “pica-pau”.

“It’s always like this, on the right there are 90% working, etc., and 10% woodpeckers. That 10%, for example, blocked our tax reform. Interestingly, I talked to a left-wing deputy, I can’t say his name so as not to do electoral propaganda, but I asked: “Are you going to let an opportunity like this pass you by? To tax profits and dividends?”.

According to the minister, after the reform was approved in the Chamber, “a lot of mice descended on Brasília and stopped everything”. Paulo Guedes has already stated on other occasions his intention to use the taxation of profits and dividends, present in the reform, to fund the permanent value of Auxílio Brasil at R$ 600.

basic income

During the interview, Paulo Guedes praised the creation of Plano Real and Bolsa Família, but pointed out mistakes in the programs. According to him, one of the negative consequences of the Real Plan was the stagnation of the Brazilian economy.

“It was a well-designed plan, but it had major flaws. First, they thought the exchange was an anchor and ended up blowing the anchor. Cambio is meant to be floating. According to fiscal responsibility, which only came eight years later. We stagnated the Brazilian economy.”, Guedes said.

Guedes continued, and said that “Lula was an interregnum, because he managed to grow in the wake of the previous stabilization, but right there, the gas ran out. He had the merit of putting some expenses like Bolsa Família, putting the most fragile in the public budget, that’s okay. But now we’ve tripled that. It was 0.4% of GDP, now we are transferring 1.5% of GDP. Three times more, for 20 million families, and 50 million Brazilians.”

The minister also recalled that the government had, in 2018, the intention of creating a basic income program that, according to him, had to be advanced with the Covid-19 pandemic and the creation of emergency aid.

Source: CNN Brasil



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