By Artur Piva
On Tuesday 23rd, the House of Representatives approved the new fiscal rule proposed by the Lula administration.
The project aims to promote stability to finance the PT administration’s spending.
However, the text brings more insecurity to the market and worries entrepreneurs, warns Hugo Garbe, chief economist of G11 Finance and professor of economics and finance at Mackenzie Presbyterian University.
According to the economist, the approved regulation does not promote great changes.
“The text doesn’t bring anything new,” he explained.
“It only changes tax rules and tax rates for certain sectors.”
According to Garbe, the state is very present in Brazil’s economy.
This raises the importance of the country’s solid and clear regulation for public accounts.
“The fiscal strategy is fundamental for generating employment and income,” he commented.
“The more you charge, the more the businessman is pressured and insecure. Thus, he opens fewer jobs.”
The specialist clarifies that the text approved by the deputies does not create or increase taxes by itself.
However, the economist warns about the many exceptions in the new fiscal rule, which leaves the Lula government free to create new taxes.
“In practice, this is what worries us,” he concluded.
With information from Revista Oeste
News Brazil, English news Brazil, Brazilian politics
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