Despite the Minister of Economy, Paulo Guedes, articulating to try to regain the new CPMF (Provisional Contribution on Financial Transactions), the President of the Chamber of Deputies, Rodrigo Maia (DEM-RJ), proves to be a difficult barrier to overcome for the approval of the tax. At an event held in São Paulo yesterday, he was adamant when saying that he is against any proposal for a new tax that comes from the Executive, even if it is a CPMF renamed. And he warned: as long as he runs the House, no text proposing the creation of a tax will be on the agenda.
“They will want to invent a new name in English (from the new CPMF) to look better. The fact is that society no longer wants tax, ”said Maia, during a virtual seminar on tax reform organized by the National Confederation of Industry (CNI). He criticized any new tax that raises the tax burden and will vote against it.
“A new CPMF is a cumulative and regressive tax. I am against it on the merits. We will make the same mistakes as in the past. The CPMF was created for health, but that was not where it was destined ”, he added.
Maia criticized the creation of the CPMF as a way of seeking to cover the increase in government spending. “There is no point in increasing the tax burden to solve the problem of public spending,” he warned. He recalled that, “between 1996 and 2004, previous administrations increased the tax burden by 9% and the problem of public spending was not solved”.
According to the mayor, the solutions to solve the problems of the post-pandemic economy that go through breaking the spending ceiling – constitutional amendment approved in 2016 that limits the growth of primary government spending due to the inflation of the previous year. “All the solutions put forward are in the opposite line of what we have been defending since the Michel Temer government, which is to organize public accounts and improve the efficiency of spending,” he said.
Maia defended tax reform and measures to cut spending and untying revenues as priority agendas, such as the federal pact and administrative reform. For him, it is necessary to consider a change in the tax system, which reduces its complexity and does not hinder the recovery of the economy, reducing the load’s regressivity. “If we are going to create a new tax to relieve the payroll, we will adopt the same solution as the past, which did not solve more serious problems. It looks like it will be more of a tribute that will hinder more than help in the resumption. It is very important to have a debate so as not to make mistakes. We released the payroll, under the Dilma Rousseff government, and this did not generate jobs ”, he recalled.
For the mayor, the sheet is very expensive “worldwide”, but in Brazil, “it costs much more”. “We have to look at public spending to relieve the payroll. It is not by increasing the tax that we will solve our problems ”, he reinforced. Maia stressed that no new taxes will be levied in the Chamber, at least, until February, when his term ends. “We will continue with the proposals for tax reform, federative pact and triggers for the spending ceiling.
Waldery: Government committed to ceiling
The special finance secretary, Waldery Rodrigues, defended the spending ceiling yesterday and said that the government takes into account the restrictions imposed by the constitutional amendment for the economic scenarios of the coming years. The comment was at the monthly meeting, with deputies and senators, about the impact of the coronavirus pandemic on public accounts, when he presented the fiscal actions and budgetary executions of the measures to face the covid-19. According to Waldery, measures to combat the coronavirus had an impact of R $ 526 billion, of which R $ 505.4 billion in expenses and R $ 20.6 billion in revenue waiver. The largest expense was with emergency assistance to the population, R $ 254.2 billion, followed by aid to states and municipalities, of R $ 60.2 billion.
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