Haddad says he wants fiscal rule and tax reform “resolved by April”

The Minister of Finance, Fernando Haddad, spoke this Tuesday (17th), in Davos, Switzerland, that he wants to open talks for the elaboration of the new fiscal framework in February.

He also said he hoped to have both the new spending cap rule and the first part of the tax reform, which unifies consumption taxes, “resolved” by the end of April.

“In the month of February we are going to open the debate on the fiscal rules, with all the organisms”, said the minister to Brazilian journalists, during his participation in the World Economic Forum in Switzerland.

“The IDB [Banco Interamericano de Desenvolvimento] made itself available, and many Brazilian economists, universities and specialists will be called upon to give their opinion. I would like that, by the end of April, we had these two issues [arcabouço fiscal e reforma tributária] resolved.”

The first piece of the tax reform deals with the unification of consumption taxes and is already in the most advanced discussion in Congress, with the first proposals presented to Parliament in 2019.

After its approval, said Haddad, it will be possible, in the second half, to continue discussions on the second part, which reforms the Income Tax.

Tax on profits and dividends, as well as updating the IR collection ranges, which have been frozen for years, were some of the topics mentioned by him.

“This reform [do IR] it is not prepared (…), we will not answer [essas questões] now,” said the minister.

“We will address this in the second half. Once the excise tax reform is passed, we will open up discussion with Congress about these injustices.”